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Cable Hovers Below Last Week's Highs, Political Noise Ignored

GBP
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GBP/USD starts the week just shy of Friday’s best levels (1.2751), last 1.2743.

  • Technical trend conditions for cable remain bullish.
  • A break of last week’s high (1.2761) would open the way towards the Mar 21 high (1.2803).
  • Initial support comes in at the May 16 low (1.2643).
  • A reminder that UK markets are closed as the country observes a public holiday today, this will limit liquidity in GBP pairs as well as broader FX trade (a U.S. holiday withdraws further liquidity).
  • Sterling shrugs off Westminster-centric weekend headlines, as embattled PM Sunak’s latest policy suggestions came under widespread scrutiny, while Conservative MPs continue to step down ahead of the election.
  • A reminder that expectations point to a comfortable Labour victory in the July ballot, explaining the lack of movement in GBP pairs.
  • Only lower tier UK data is due this week, with BoE appearances suspended until after the election (save the policy meetings, which are set to go ahead as scheduled).
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GBP/USD starts the week just shy of Friday’s best levels (1.2751), last 1.2743.

  • Technical trend conditions for cable remain bullish.
  • A break of last week’s high (1.2761) would open the way towards the Mar 21 high (1.2803).
  • Initial support comes in at the May 16 low (1.2643).
  • A reminder that UK markets are closed as the country observes a public holiday today, this will limit liquidity in GBP pairs as well as broader FX trade (a U.S. holiday withdraws further liquidity).
  • Sterling shrugs off Westminster-centric weekend headlines, as embattled PM Sunak’s latest policy suggestions came under widespread scrutiny, while Conservative MPs continue to step down ahead of the election.
  • A reminder that expectations point to a comfortable Labour victory in the July ballot, explaining the lack of movement in GBP pairs.
  • Only lower tier UK data is due this week, with BoE appearances suspended until after the election (save the policy meetings, which are set to go ahead as scheduled).