GBP/USD analysis: Brexit chaos overshadows dollar's sell-off
|GBP/USD Current Price: 1.2656
- UK PM May expected to resign Friday.
- GBP/USD unable to recover despite broad dollar's weakness.
The Pound kept suffering from attempts to outs PM May, falling vs. the greenback to 1.2604, a level that was last seen in January. On Wednesday, the Leader of the House of Commons Andrea Leadsom stepped down spurring concerns that other UK ministers will follow her lead. The Brexit withdrawal bill that PM May was supposed to present this Friday won't be published or debated until early June. The 1922 Committee met late Thursday but failed to agree on a rule change which would allow to outs PM May. However, the treasurer of the Committee, Geoffrey Clifton-Brown, said that they will allow a new no-confidence vote in the PM if she doesn't announce her resignation by Friday. Meanwhile, PM May is having frantic meetings with cabinet members to "hear about their concerns on the bill," with her spokesman repeating that she remains focused on delivering Brexit. The UK will release April Retail Sales this Friday, seen down monthly basis by 0.3%.
The GBP/USD pair hovers around 1.2660 maintaining the short-term negative tone, as, despite broad dollar's weakness, the Brexit chaos keeps the Sterling away from the market's favor. In the 4 hours chart, the intraday advance stalled below a bearish 20 SMA, while the Momentum indicator retreated sharply after nearing its mid-line and the RSI loses upward strength, now at around 39, all of which indicates that bearish interest dominates the pair.
Support levels: 1.2640 1.2605 1.2570
Resistance levels: 1.2680 1.2715 1.2750
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