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  • The Brexit uncertainty weighs over the GBP/USD amid lack of major data/event.
  • Borish Johnson keeps his pledge to leave EU on October 31 while Labour gains trade unions’ support for no-deal Brexit and another referendum.

Even if the absence of the major catalysts from the UK limits GBP/USD moves, uncertainty surrounding the Brexit drags the pair gradually downward as it traders near 1.2520 during early Tuesday.

While the candidates for the British Prime Minister (PM) post, Boris Johnson and Jeremy Hunt, have been crossing wires through various appearances, both of them seem firm on the UK’s departure from the EU on October 31. However, Mr. Johnson seems a bit tough while standing ready to face no-deal scenario and refrains from seeking any cross-party help during his latest comments on the Telegraph.

On the other hand, the opposition Labour party is luring trade unions and have mostly won the battle. The BBC conveys that major five of the UK’s trade unions are supporting a deal on Brexit and a second referendum if the general election delivers Labour as a winner.

At the data front, the recent UK BRC Like-For-Like Retail Sales for June dropped below +0.8% market consensus to -1.6% versus -3.0% prior.

Further, renewed trade tension between the US and China is likely exerting downside pressure on the US Dollar (USD). However, latest upbeat employment data helps the greenback to remain strong.

With little data on hand, investors will emphasize on the slew of speeches by the US Federal Reserve authorities in one or the other functions/forums/dinners. Though, British political play won’t lose its importance for a moment because of that.

Technical Analysis

June 18 low near 1.2510 can act as immediate support ahead of dragging the quote to December 2018 low around 1.2480, the year 2019 bottom close to 1.2440 and 1.2400 round figure. Meanwhile, an upside clearance of 1.2610 becomes necessary for the pair to aim for a late-June low around 1.2660.