The GBPUSD is the biggest mover today. Sellers taking back some control
While UK Prime Minister Keir Starmer hangs on politically, the GBPUSD is moving sharply lower and is currently the biggest decliner among the major currency pairs against the stronger US dollar. The pair is down around -0.65% on the day, with sellers maintaining control after key technical breaks during the Asian-Pacific and European sessions.
Technically, the price first moved below the 100-hour moving average during the Asian-Pacific session, signaling a modest shift in bias away from the buyers. Sellers then increased downside momentum in early European trading after breaking below the 200-hour moving average. That bearish rotation pushed the pair down toward a key swing area between 1.3497 and 1.3512.
So far, buyers have found support against that swing area, while the rising 100-day moving average at 1.34806 remains just below. Those support levels are now critical barometers for buyers and sellers. A move below the swing area and the 100-day moving average would increase the bearish bias and open the door for further downside momentum.
Looking at the 5-minute chart, the pair has remained in a well-defined downward trend from yesterday’s high, but price action has started to consolidate near the lows. The corrective rebound has repeatedly stalled near the 100-bar moving average on the 5-minute chart, currently at 1.35277. Above that, the 200-bar moving average comes in at 1.35477 and continues to trend lower, helping define the near-term bearish bias.
The high correction off today’s low reached 1.35526, just short of the 38.2% retracement of the latest decline at 1.3559. If sellers are to remain firmly in control, those resistance targets would need to hold. A move back above the 100-bar MA, 200-bar MA, and the 38.2% retracement level would disappoint the trend sellers and could trigger a deeper corrective rebound.
UK Prime Minister Keir Starmer is in the most precarious position of his 22-month tenure — and this week could define whether he survives it.
Labour suffered major losses in last week’s local elections, losing over 1,100 seats it had previously held, while Nigel Farage’s Reform UK gained more than 1,400 seats across the country. The results triggered an avalanche of calls for Starmer to go.
In a make-or-break speech on Monday, Starmer vowed to “face up to the big challenges" facing the UK, citing growth, national defence, the UK’s relationship with Europe, and energy as urgent priorities — insisting he knows he has “doubters" but will “prove them wrong.
It hasn’t been enough for many in his own party. ITV News is tracking Labour MPs, and currently more than 92 are publicly calling for him to go.I
What comes next?
To trigger a formal leadership contest, a challenger needs the support of 20% of the Parliamentary Labour Party — 81 MPs — and those backers must go public. Unlike the Conservatives, it is not a secret ballot, and the PM automatically gets the right to fight the contest.
The potential candidates are circling: Health Secretary Wes Streeting has so far been reluctant to make the first move; Angela Rayner needs more time to sort out personal matters; and the contender who polls best with the public, Andy Burnham, can’t act yet because he’s not even an MP.
The broader picture is stark — the UK now has at least five major political forces, and the next general election must be held before May 2029. Reform, the Greens, the Lib Dems, and Plaid Cymru are all positioning for gains.
Starmer is digging in. Whether the numbers in Westminster eventually force his hand is the defining political question of the coming weeks.
Four ministers have resigned, with three named publicly — Jess Phillips (Safeguarding Minister), Alex Davies-Jones (Minister), and Miatta Fahnbulleh (Junior Minister for Devolution, Faith and Communities) — all citing a lack of confidence in the PM.
Fahnbulleh said Starmer had “lost the trust and confidence of the public." Phillips said she was “not seeing the change I think I and the country expect" and could not continue to serve under the current leadership.
Despite the number of MPs voicing their lack of confidence in the PM passing the 81 threshold, a leadership contest will only be triggered if a candidate puts themselves over the top to challenge Starmer.
The full Cabinet itself remains largely intact for now, though clearly divided behind closed doors.On Tuesday, Keir Starmer told his Cabinet that a leadership challenge had not been triggered and he intends to “get on with governing”.
*** In more recent headline UK Streeting will hold talks with Starmer tomorrow morning. News
This article was written by Greg Michalowski at investinglive.com.