GBP/USD pays little heed to UK politics ahead of Manufacturing PMI

• GBP/USD mildly bid above 1.2900.
• Recent polls, the Conservative Party’s media appearances suggest that Tories are losing the fame.
• Activity numbers from the US and UK, coupled with trade/political headlines, will be in focus for fresh impulse.

The GBP/USD pair looks for fresh direction as it trades near 1.2915 while heading into the London open on Monday. That said, the pair seems to pay a little attention to the political plays surrounding the United Kingdom’s (UK) election ahead of the key Purchasing Managers’ Index (PMI) data.

The absence of the UK Prime Minister (PM) Boris Johnson from the ITV’s seven-party debate weighed on the ruling Conservative Party’s representatives at the talks, as suggested by the Independent. This adds to the mixed scenario portrayed by the recent polls concerning the December month election. The Observer states that the gap between the ruling Tories and the main opposition Labour Party is down by four points since a week ago whereas A Savanta ComRes Survey indicates a two-point lead of the Conservative over Labours during the same period.

While trying to beat the odds, UK PM Johnson managed to overcome any humiliation in the BBC’s interview with Andrew Marr. Though, the opposition Labour Party also does its best and promises the 'biggest ever' plan to cut rail fares in England, as per The Guardian. Terrorist attack on London Bridge is also something that both the parties are trying to benefit from.

On the other hand, doubts over the phase-one deal between the United States (US) and China are weighing on the US dollar (USD) whereas recently positive activity data from China adds strength to the risk sentiment.

Although trade/political headlines will keep the driver’s seat, November month Purchasing Managers’ Index (PMI) data from the US and the UK could offer intermediate moves. Among them, UK Manufacturing PMI, expected 48.3, will be the first to observe ahead of the US Markit and ISM activity indices. Forecasts suggest the Markit PMI remain unchanged at 52.2 but ISM Manufacturing PMI could rise to 49.9 from 45.5.

Technical Analysis

Buyers could prefer waiting for an upside break of a descending trend line since October 21, near 1.2975, prior to targeting 1.3000 and October month high near 1.3015. Meanwhile, Friday’s low near 1.2880 and an upward sloping trend line since November 08, at 1.2840 now could offer immediate rests during the quote’s declines.