Cable continues to trade near 2026 low (1.3159, posted on March 31 and last Friday’s low / trendline support at 1.3163) following news of resignation of UK PM Starmer.
Growing uncertainty about how the new Prime Minister (likely to be in place in early September) will run the economy, burdened by prolonged weak economic growth, high debt and the highest borrowing cost in G7 group, with demands to cut spending and increase investments, particularly in defense sector.
All these factors continue to pressure pound, along with stronger dollar, underpinned by Fed’s hawkish steer.
Bearish daily studies contribute to negative short-term outlook, though oversold conditions suggest that near-term action may consolidate above strong supports at 1.3163/59 before larger bears regain control.
Solid resistances at 1.3300 zone (former range floor) and 1.3335 (falling 10DMA) should cap upticks, while potential break higher would put bears on hold and unmask next strong barriers at 1.3408 (daily cloud base / 200DMA).
Res: 1.3278; 1.3300; 1.3335; 1.3377
Sup: 1.3159; 1.3080; 1.3009; 1.2984
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