Cable volatile as traders assess Britain’s new PMGreat British Pound vs. US DollarFX:GBPUSDMichael_Stark_ExnessMarkets generally received Andy Burnham as prime minister more positively than initially expected due in part to his caution in initial announcements and attempts to portray continuity with the economic policies of Keir Starmer’s government. The pound has been volatile recently as sentiment ebbs and flows on monetary policy as well as politics, with 22 July’s British inflation slightly below expectations reducing the probability of imminent hikes by the BoE. The 23.6% weekly Fibonacci retracement around $1.335 is an important technical reference which might be an area of support now that the pound has retreated from mid July’s highs. However, with the price in the value area between the 20 and 50 SMAs and seasonally low volume likely to continue, there could be some sideways movement in the near future. There’s no indication of saturation with the slow stochastic very close to neutral. The 100 SMA around $1.34 is a possible local resistance. Fundamentally, losses seem more favourable in the near future than a resumption of the bounce. $1.33 is a possibly important area in the near future; the 38.2% Fibo would probably cap losses further ahead unless there’s a significant change in sentiment or the tone of economic data. This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.