GBP/USD seesaws around 1.2700 as UK politics grab the spotlight

  • Lack of data continues to highlight political plays.
  • The first round of voting is in the spotlight.

Even if Boris Johnson’s U-turn on hard Brexit and the UK Parliament’s rejection to the motion aimed at blocking the no-deal exit, the GBP/USD pair remained on a back foot recently. However, housing market survey offers temporary relief to the Cable ahead of today’s political drama as it quotes near 1.2700 during early Thursday.

The frontrunner to the UK PM’s race Boris Johnson yesterday launched his election campaign and surprised followers by saying that he didn’t support no-deal Brexit while favoring October 31 deadline to step out of the bloc.

While the same should help the British Pound (GBP) as a bit soft outlook from the Brexit hardliner that is more likely to become the next UK Prime Minister, investors focus more on the British Parliament’s rejection to the opposition Labour party backed a cross-party motion that could block no-deal Brexit.

During the initial Asian session, Reuters spotted the latest survey by the Royal Institution of Chartered Surveyors (RICS) to conclude that the UK’s housing market is improving due to the latest delay in Brexit.

The GBP traders are now waiting for the first round of voting to select the Conservative leader amid lack of important data from the US and also at home.

Technical Analysis

Given the pair’s sustained trading beyond May-end high around 1.2640 and 1.2600, chances of its uptick to 1.2865/75 area comprising April low and 50-day simple moving average (SMA) can’t be denied if it manages to rally past-1.2760.

Should there be a downside break of 1.2600, 1.2560 and December 2018 low near 1.2480 might offer intermediate halts towards the year’s bottom near 1.2440.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bearish outside day as Fed tempers aggressive rate cut expectations

Tuesday’s bearish outside day makes today’s close pivotal. Fed officials pushed back on aggressive rate cut calls, pushing the USD higher. An above-forecast US durable goods data could yield a bearish daily close. 


GBP/USD offers fewer moves ahead of Carney’s speech

Having reversed from the 50-day SMA, mainly because of renewed Brexit fears and sluggish data from the UK’s CB retail sales survey, the GBP/USD pair trades modestly flat near 1.2685 ahead of the London open.


USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 


Gold: 100-HMA triggers the U-turn towards $1421?

Gold is on a run towards near-term horizontal-resistance following its U-turn from the 100-hour moving average (HMA) ticks it up to $1407.80 ahead of the European open on Wednesday.

Gold News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more