GBP/USD fades the up tick, back around 1.2660

After testing session highs near 1.2690, GBP/USD has now surrendered those gains and is testing the lower end of the range in the 1.2665/60 band.

GBP/USD under pressure on UK politics

Cable continues to suffer the increasing uncertainty in the UK’s political scenario, as PM Theresa May faces new risks while Conservatives are still negotiating a deal with DUP in order to form a minority government.

The pair has returned to the middle of the weekly range after GBP failed to extend the rally beyond the key 1.2700 barrier after BoE’s Chief Economist A.Haldane hinted oon Wednesday at the likeliness of a rate hike by the ‘Old Lady’ later this year.

Nothing worth mentioning in the UK data space, with USD-dynamics and domestic politics drving the sentiment around the Sterling for the time being.

GBP/USD levels to consider

As of writing the pair is down 0.08% at 1.2661 and a breakdown of 1.2590 (low Jun.21) would open the door to 1.2552 (200-day sma) and finally 1.2362 (low Apr.10). On the other hand, the next resistance emerges at 1.2710 (high Jun.21) seconded by 1.2758 (high Jun.20) and then 1.2802 (20-day sma).