The Pound continued moving higher yesterday as US Federal Reserve turned bearish on the greenback. Moreover, traders are now more in a risk-off and relief mode, as British politics is slowly turning to positive and away from uncertainty. At the end of five Tory voting rounds, Boris Johnson and Jeremy Hunt were the only remaining candidates for the British Prime Minister’s post. They will now begin their campaign from Saturday and the result will roll out on July 22. The Sterling’s recent bullish sentiment will likely continue today as market participants are slowly moving away from the US Dollar.
The Sterling continued to push higher, and currently trade above/under 1.27, just below the 200-day moving average. A short-term pullback is expected after such big move before the next leg up. The bulls will be eyeing to retest and possibly break above the 200-day moving average. If successful, then their next target will likely be 1.28. However, the bears need to break back below 1.2660 to stop this current bullish momentum.
Support: 1.2660 / 1.2615
Resistance: 1.27 / 1.2760