GBP/USD slips to a session low of 1.2822 as Nigel Farage rules out offering more help to the Conservatives
It took a few minutes for the pound to react but it eventually did, though the messaging from Farage is no different from what he offered up yesterday to be honest.
That said, with the near-term bias in cable still holding more neutral, we are seeing sellers start to try and capitalise on the situation to test the 100-hour MA (red line) @ 1.2832.
If they can manage to hold a break below that, the near-term bias will then turn more bearish once again - after buyers failed to hold a break above the 200-hour MA (blue line).
Looking at the fundamentals, there has been a lot of talk since Farage's move yesterday and the bulk of it suggests that the boost to Johnson's election bid may not be as profound as what the optics may appear to be.
It's something that I highlighted here as well.
On the balance of things, it could reduce odds of Labour forming a minority government with other Remain parties, but it may not necessarily reduce odds of a hung parliament significantly as many would think.
As such, the pound will still be largely driven by election sentiment over the next four weeks and that will be the main beat that the currency will dance to until the election is over.
