The British Pound gained some ground on Friday after the greenback dropped on the back of dovish Fedspeak that gave rise to expectations of easy money from the US central bank on the back of future rate cuts. Meanwhile, the British political fraternity continues to favor Boris Johnson in the race of PM even if he remains ready to trigger hard Brexit. Earlier in the morning, PM Candidate Johnson said that his first step after being the UK leader will be to make a trade deal with the US. The absence of any macroeconomic data today will keep the markets slow and sidelined waiting for a Brexit catalyst.
The Cable broke above the 50-day moving average on Friday and currently is testing the 1.2570 resistance level. A break above this line will take the Pound to retest 1.26. However, if the bulls lost their momentum, the bears will take over and pullback at least towards 1.2550s (the 50-day moving average).
Support: 1.2506 / 1.2440
Resistance: 1.2570 / 1.26