Cable under pressure as PM’s control seems weakBritish Pound/US DollarFX:GBPUSDMichael_Stark_ExnessRumbling discontent among Labour’s backbenchers increased significantly after poor results from recent local elections. Although so far only a few junior ministers have quit and nobody has formally challenged Keir Starmer’s leadership, the Health Secretary Wes Streeting has been reported in various sources to have reached the threshold of 80 MPs ready to nominate him for election to leader of the party. Other potential candidates include Angela Rayner and Andy Burnham although the latter would need to be reelected as an MP before running for leadership of Labour. None of these figures if made Prime Minister would be likely to drive a significant leftward shift in the government’s policies but the British bond market has reacted strongly to the instability. Yields from decade gilts briefly reached 5.1% on 12 May, the highest since the Global Financial Crisis in 2008. Cable possibly has more room to decline than euro-dollar with volume having declined a bit less so far this month so far and volatility higher. Momentum below $1.35 might lead the price down to the 200 SMA around $1.34. The slow stochastic is almost exactly neutral. $1.36 is a possible resistance which could cap gains. After British GDP for the first quarter came in much stronger than expected (1.1% compared to the consensus of 0.8%), traders are looking ahead to the British job report on 19 May which is expected to be broadly negative. This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.