GBP/USD: Buyers concentrate on greenback weakness amid UK’s political pessimism
|- Political drama at the UK couldn’t weaken the Cable amid US Dollar (USD) decline.
- Economic data can join macro to provide near-term direction.
Even if the UK PM May’s future leadership status is in limbo, the GBP/USD pair is on the road to recovery as it trades near 1.2665 at initial Asian session on Friday.
British political drama offered another busy day to global watchers after the coup against the Prime Minister Theresa May is finally playing its role towards her likely offering of the departure date on Friday as per the Mirror report.
However, investors were more concerned about the US Dollar (USD) weakness as disappointing purchasing manager index (PMI) and new home sales data joined negative vibes from the trade spat with China.
With the PM May has already postponed putting her Brexit plan on the discussion today, political plays surrounding her leave timetable will be on the spotlight.
At the economic front, investors may now concentrate on the UK retail sales and the UK durable goods orders for April. None of these readings are bearing upbeat expectations and may keep pushing market players in the direction to follow macros for fresh positive impulse.
Technical Analysis
While a break of 1.2600 could open the door for the quote’s slump to 1.2480 and then to January lows near 1.2430, an upside clearance of 1.2710 highlights February bottom around 1.2770 and 1.2800 as next resistances to watch during the recovery.
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