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.

Anil Panchal FXStreet

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.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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