Cable slips to session low as pound holds slightly softer
GBP/USD falls just under the 1.2550 level
The pound is a little softer in European morning trade as price just slips to under 1.2550 against the dollar. Trading has been light for the most part among major currencies with markets in a calmer mood to begin the new week.
For near-term price action, look out for the 200-hour MA (blue line) @ 1.2533 for cable. Buyers need to hold price above that to maintain the near-term bullish bias and sellers will look towards chasing a break below that to seize back some control.
Looking ahead this week, there's going to be key data releases in the UK with the labour market report set for tomorrow before CPI data on Wednesday and then retail sales data on Thursday. Not to forget, the Tory leadership race will also reach an end on 23 July so expect more rumours and projections to follow in the coming days.
Disappointing headlines will continue to put a negative spin on the pound as it has over the past few weeks and it's hard to see sentiment improving unless Johnson or Hunt can find a way to navigate through the Brexit hurdle better than Theresa May.
That remains an outside chance but we'll see how things go in the coming weeks/months. Do be reminded that the UK parliament will observe a break from 25 July to 3 September so we may hear little of any Brexit progress during that period.