GBP/USD could test the previous wave low support of 1.2860


  • GBP/USD is trading 0.10% lower today but could be vulnerable to more downside pressure.
  • The UK PM has said that "Parliament is paralysed" ahead of the UK general election.

 

In a pretty quiet session for GBP/USD the market is looking to test the 1,2860 support zone.

If breached it could open the pair up for a further move to the downside.

GBP/USD held up pretty well against USD strength yesterday as it closed flat while EUR/USD fell 0.47% and USD/JPY rose 0.52%.

Today kick starts the Conservative (Tory) election campaign. Boris Johnson delivered a speech outside Number 10 Downing Street saying that the UK parliament is "paralysed".

Today Conservatives have had to deal with some other issues as Alun Cairns quit as Welsh secretary after being accused of lying about his knowledge of an allegation that his former aide sabotaged a rape trial. Not the start the current PM would have wanted.

Elsewhere, the EU have stated it did not amend Theresa May’s Brexit deal for Mr Johnson and only ‘clarified’ it. Possibly another blow leading into the campaign.

Looking at the hourly chart below, you can see that the 1.2860 level is under threat. The market is currently grinding lower amid now real market-moving information today.

GBP analysis

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