GBP/USD surges to multi-day top amid notable USD weakness
- Doubts over a trade deal with China, geopolitical tension with Iran drags the USD down.
- Lack of data emphasizes politics as the key driver.
- Boris Johnson continues to be under pressure over home raw.
Like all other major currency pairs, GBP/USD also benefits from the greenback’s across the board declines as it takes the rounds to 1.2748 during early Monday.
The cable rises to the 12-day top as buyers go further away from the US Dollar (USD) amid the US trade tension with China and political tussle with Iran.
Chinese media continues to criticize the US-led trade protectionism whereas China’s Assistant Foreign Minister recently cited possibilities of candid and constructive talks at the G20. The said meeting of global leaders are gaining importance off-late as Presidents of the US and China are likely to restart their trade talks at the sidelines of the venue.
Other than trade uncertainties, the US President’s threat to levy fresh sanction on Iran, as conveyed by the Bloomberg, also weighed on the greenback.
Elsewhere, hardships for the Prime Minister candidate Boris Johnson is grabbing the spotlight as some of the key British politicians, including his rival Jeremy Hunt, have started demanding clarification of the latest incident at his home where police needed to intervene.
Looking forward, the economic calendar seems quite empty except for few second-tier US activity data which in turn highlights political plays to become the key driver for the markets.
Technical Analysis
While current-month high near 1.2763 can challenge the pair’s immediate upside, 50-day simple moving average (SMA) level near 1.2815 attracts short-term buyers’ eye-share ahead of highlighting April month low near 1.2865.
On the downside, 1.2700, 1.2660 and 1.2610 are likely nearby supports that the sellers can target during the quote’s pullback ahead of aiming month’s low near 1.2506.