GBPUSD was trading most of the day above 1.27 but when breached below the 100 hour moving average sellers stepped in and forced the price down at 1.2665. Tory leadership controversy still weighs on GBP as we are heading to the October Brexit deadline. No Deal Brexit fears resurface as Boris Johnson is the favorite to move in to Downing Street replacing Theresa May. Bank of England kept interest rate unchanged at 0.75% the last week as widely expected.
As of writing the pair is trading at 1.2665 where it found support at the 200 hour moving average. GBPUSD looks trapped between the 1.2660 and 1.2740 range for over a month as traders can’t decide about the direction of the next leg. I am neutral for the pair a wait and see stance is the approach at these levels. Support for the pair stands at 1.2644 the low from June 21, which if broken might accelerate the slide further towards 1.26 round figure. On the upside immediate resistance stands at 1.2687 the 50 hour moving average and if the pair manages today to close above it might continue with an attempt to 1.2724 the daily high.