GBP/USD stabilizes around 1.2400 after the slump to 27-month low
|- Brexit woes keep weighing on the GBP/USD pair despite upbeat UK jobs report.
- British inflation numbers, political plays should be followed by fresh impulse.
Having plummeted to a 27-month low, GBP/USD recovers to 1.2410 during early Wednesday.
The pair couldn’t take advantage of better than forecast Average Earnings from the UK as runners to the UK Prime Minister’s (PM) post continue showing their hard stand against Irish backstop that the EU insists during its previous deal with Theresa May.
Additionally, Boris Johnson’s readiness to announce the early election, if he becomes the PM, in order to avoid hardships from the opposition Labour party leader Jeremy Corbyn, also weighed on the British Pound.
Investors showed little attention to the US-China trade tussle, that should help the Cable, while giving higher importance to the overall US Dollar (USD) strength at the time of praising bears.
June month Consumer Price Index (CPI) from the UK becomes the key for the pair traders for now. The headline inflation number is likely to remain unchanged at 2.0% on a yearly basis but may dip to 0.0% from 0.3% MoM.
Technical Analysis
A sustained downturn beneath latest lows of 1.2396 can fetch prices to late-March and April 2017 lows surrounding 1.2330 and 1.2365 respectively. However, oversold conditions of 14-day relative strength index (RSI) favors the quote’s pullback towards Monday’s low of 1.2510 if 1.2440 is conquered successfully.
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