• Sterling remains flat despite UK’s Brexit party’s loss in local elections. 
  • Daily candles with long upper shadows have put a damper on corrective rally.

GBP/USD continues to trade largely unchanged on the day at 1.2690 with Sterling struggling to pick up a bid despite Brexit party’s loss in UK’s local elections

Results hit the wires soon before press time that the Labour Party has won Westminster seat in Peterborough by 683 votes over Brexit party. So far, however, the news has failed to move the needle in GBP/USD.

Cable witnessed a bullish divergence of the 14-day relative strength index on May 31. The back-to-back daily candles with long upper shadows created on Wednesday and Thursday, however, have weakened prospects of stronger corrective bounce.

The currency pair may continue to trade in a sideways manner ahead of the European session. UK’s Halifax House Prices data due at 07:30 GMT and the Consumer Inflation Expectations scheduled for release at 08:30 GMT could influence the GBP pairs.

A big moves, however, may remain elusive with the all-all-important US non-farm payrolls data scheduled for release at 12:30 GMT.

Pivot levels

GBP/USD sees little action after Peterborough By-election results

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