GBP/USD: Unfazed from UK politics ahead of US employment data

• British politics, expectations of another Brexit extension couldn’t lure Cable buyers.
• Except for second-tier UK data for intermediate moves, all eyes on the US job numbers.

The surprise victory of opposition Labour party and news favoring another Brexit extension couldn’t fuel the GBP/USD pair as traders remain on sidelines ahead of the US employment statistics. The Cable clings to 1.2700 ahead of the London open on Friday.

Having witnessed the unexpected rise of the Brexit party during the EU election results, today’s by-election of Peterborough emphasized the seven-week-old party to maintain the lead. However, Nigel Farage & Co. couldn’t beat Labour and stood second in the tally.

Additionally, The UK Times came out with a news report mentioning anonymous EU sources that the regional leaders are ready to allow another Brexit extension considering the need for the second referendum after the new PM takes office.

Moving on, Halifax house prices and consumer inflation expectations are the only UK data on the card. The housing price gauge could soften to 4.9% from 5.0% on 3m/YoY basis while likely declining to -0.2% from 1.1% on a monthly basis during May.

On the other hand, the US nonfarm payrolls (NFP) could decline to 185K from 263K prior but unemployment rate and average hourly earnings (YOY) are both likely to remain unchanged at 3.6% and 3.2% respectively.

Technical Analysis

While 1.2650, 1.2600 and May month low near 1.2560 seem nearby supports for the pair to witness during its downside, February lows surrounding 1.2775, 1.2810 and April month bottom around 1.2865/70 can challenge Cable buyers in times of a rise.