GBP/USD: Buyers mark presence ahead of BOE’s Carney speaks

• Absence of negatives from the US President Trump’s UK visit and overall USD weakness helps the Cable presently.
• Light economic calendar shifts market focus on a speech by the BOE’s Carney and trade developments.

The GBP/USD pair remains on the road to recovery as it trades near 1.2690 while heading into the London open on Friday.

The Cable gave little reaction to better than forecast services PMI numbers on Wednesday as the US Dollar (USD) rose across the board on strong ISM manufacturing PMI statistics.

During the early Asian session, positive comments at the end of the US President Donald Trump’s three-day UK visit pleased pair buyers. Elsewhere, uncertainty surrounding the US-Mexico and US-China trade relations weighed on the greenback.

Traders now await signals of future monetary policy action by the Bank of England (BOE) Governor Mark Carney when he speaks at the Institute of International Finance Spring Meeting, in Tokyo.

At the domestic political front, a by-election in Peterborough may give its first House of Commons’ seat to the Brexit party, which in turn could raise bars for future Brexit decisions after the party received huge positive response in the latest EU elections.

While economic calendar seems almost empty with the US trade balance, which may inch down from $-50.00 billion to $-50.70 billion, political plays surrounding trade and Brexit can keep entertaining investors.

Technical Analysis

A lower high formation during last fortnight portrays the pair’s weakness that can drag it back to 1.2650 and May month bottom near 1.2560. However, an upside clearance of 1.2750 can escalate the pair’s rise in the direction to February low around 1.2775, 1.2810 and then to April month bottom around 1.2865/70.