GBP/USD: upside limited but a push to 1.2750/75 not out of the question

Currently, GBP/USD is trading at 1.2658, up 0.22% on the day, having posted a daily high at 1.2712 and low at 1.2589.

GBP/USD is vulnerable to the downside on yet further disappointing news for the PM May who is barely holding in there after a devastating fall out of support in the recently run snap elections. 

Fed's Harker: Balance sheet runoff may start in September

The latest news is that her head of policy was quitting just as the Brexit negotiations have gotten under way this week. Just ahead of theM Queen’s Speech it was confirmed top advisor John Godfrey will leave Downing Street after less than a year in the role. 

Elsewhere, Comments from BoE economist Haldane that he favoured removing some stimulus echoes the sentiment revealed by last week’s 5-3 split on holding policy unchanged at the BoE’s latest policy meeting and Carney's comments yesterday certainly took the shine out of the pound coin as well. The upside has limited prospects at this stage.

GBP/USD levels

Earlier, analysts at Scotiabank explained that firm support now is in the low 1.26 area and scope for a squeeze back up to the mid/upper 1.27s could be on the cards. "Broader trends are still tilted lower, however, and we think Cable gains to the 1.2750/75 range would attract better selling interest from a technical point of view."