Cable reaches two-month highs as political worry subsidesGreat British Pound vs. US DollarFX:GBPUSDMichael_Stark_ExnessEfforts by likely incoming Prime Minister Andy Burnham to stress continuity and involve figures on the right of the Labour party in the change of government have been received positively by participants in financial markets. Monetary policy is less of an intrigue in Britain with the BoE unlikely to hike until the fourth quarter, but there are differing possibilities for the Fed in September with the likelihood of a hold and single hike nearly equal. 15 July’s large up candle, cable’s strongest daily gain since April, pushed clearly above all the moving averages here. The price has now retraced and might consolidate around $1.35 in the near future dePending on news. A strong gain like 15 July might in itself suggest further upward movement but there’s evidence of buying saturation from the slow stochastic and volume hasn’t increased. The area slightly above $1.36 is a possible resistance. A retreat below $1.34 seems unlikely technically but might be driven by news from the Gulf or British politics. If the price breaks back below $1.35, the 200 SMA around $1.343 could cap losses at least temporarily. Traders will now monitor several important British releases coming up, primarily the job report on 21 July and inflation on 22 July. This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.