The Pound boosted higher on Friday taking advantage of the recent Dollar weakness. UK PM May formally resigned as Conservative leader, but the market already priced in her departure. However, May will remain as the PM until her succession is resolved, most likely by the end of July. News showed that Labours beat the Brexit Paty in a by-election in Peterborough, with both parties celebrating the outcome, as the Brexit party was formed just a couple of months ago by Nigel Farage. Conservatives came third, another sign of May's failure. Today, the UK dominates the macroeconomic calendar as it will release April Industrial Production, Manufacturing Production, Trade Balance, and GDP. Most numbers are expected to come in below March data, which will keep the pressure on the Cable, at least until political noise returns.
The Cable pushed higher on Friday but momentum started to fade as soon as it touched 1.2750, taking price back towards 1.27. The bulls will try to protect this level to push price higher and possibly break above 1.2750. However, any loss of momentum will help the bears to regain control and revisit 1.2650.
Support: 1.27 / 1.2650
Resistance: 1.2750 / 1.28