GBP/USD intermarket: jittery over the terror attack and politics, DXY higher
|Currently, GBP/USD is trading at 1.2978, down -0.18% on the day, having posted a daily high at 1.3035 and low at 1.2953.
The pound has been jittery since yet another the terrorist attack in the UK. UK politicians have suspended campaigning in the election and that will weigh on the pound due to the uncertainty. Data showed a larger than expected rise in government net borrowing in Apr while the CBI retailers’ report for May was weaker than expected.
We don not have any data to run with until Thursday's GDP, but the dollar is still on the back foot in general although has managed a bid in the DXY today, so far +0.31% in the ebbs and waves in the dominant downtrend that is expected to persist while the political enevironemt remains unstable:
Analysts at Scotiabank explained that the short-term technical signals are more neutral for the pound intraday although the GBP’s dip to the upper 1.29 area has attracted support. "We see key support now at 1.2905/10."
GBP/USD levels
GBP/USD is likely to struggle at 1.3060, explained analysts at Commerzbank. "Sterling continues to struggle with 1.3060 the 29th September high. The new high has not been confirmed by the RSI and we note the 13 count on the daily chart. The market is likely to ease back/consolidate very near term. While above 1.2776/71 and upside bias remains for scope to the 1.3443 September 2017 high."
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