GBP/USD turns positive above 21-day SMA as challenges to Tories recede

The GBP/USD trades around 1.2930 while heading into the London open on Thursday. The Tory supporters are paying little heed to the previous day’s ITV debate, not to forget a surprise turnaround in the opposition Labour Party loyalists.

The latest polls from Savanta ComRes say that almost one in five Labour voters are considering backing the Tories, although immediate polls following ITV debate between the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson and the opposition Labour Party leader Jeremy Corbyn challenge Tories. Additionally, the Guardian’s news conveying the collapse of the second referendum pressure group also pleased the Conservatives.

Despite that, challenges to the UK PM stay tall as votes still doubt why the Tory leaders don’t release the report of Russian meddling into the Brexit referendum. Also limiting the Tories’ credibility is the row over fake fact check.

Markets have recently come under pressure as the United States (US) and China stay on the loggerheads over the trade matters while the US House of Representatives approved the Hong Kong bill. Risk tone stays sluggish with the US 10-year treasury yield and the Asian stocks both flashing red signals.

While a lack of major data/events could keep trade/political headlines concerning the US and China in the spotlight, headlines from the UK and second-tier housing/manufacturing data from the US might offer intermediate moves.

Technical Analysis

Sellers look for a daily closing below 21-day Simple Moving Average (SMA) level of 1.2880 to aim for monthly low surrounding 1.2770, until then 1.3000 and 1.3015 will stay on buyers’ radars.