GBPUSD

Narrow range trading extends in early European session on Tuesday, as the pair is awaiting release of BoE Financial Stability Report and speech of BoE’s Governor Mark Carney.
Near-term action remains supported by daily Tenkan-sen at 1.2700 and fresh upside attempts could be expected while the price stays above.
Monday’s action showed strong upside rejection at 1.2759, as pound failed to capitalize from Tory/DUP deal in forming Conservatives’ minority government and repeatedly closed below the first upper pivot at 1.2737 (Fibo 38.2% of 1.2977/1.2588 downleg).
Close above the latter is seen as minimum requirement for continuation of bull-leg from 1.2588 (21 June low) towards barriers at 1.2759 (Monday’s high); 1.2784 (falling 20SMA) and 1.2811/17 (daily Tenkan-sen / 14-19 June lower platform).
Bearishly aligned daily studies keep in play risk of fresh weakness, seen on sustained break below 1.2700 pivot.

Res: 1.2759; 1.2784; 1.2815; 1.2830
Sup: 1.2700; 1.2674; 1.2653; 1.2638