GBP/USD: Bears await major trade/UK political news to break below 1.2000
|- GBP/USD refrains from breaking the 1.2000 mark amid lack of major clues.
- Brexit headlines keep increasing odds of a no-deal exit with the latest ones coming from Ireland.
- UK politicians secretly plot against PM Johnson’s position in the case of a no-confidence vote failure.
Despite the absence of relief in the no-deal Brexit scenario, the GBP/USD pair fails to extend the previous downpour beneath 1.2000 psychological mark while trading near 1.2040 ahead of the London open on Monday.
The Pound plummeted on Friday after the UK Gross Domestic Product (GDP) spread disappointment among counter-trend traders while Brexit headlines keep being negative. Adding to the weakness were not so positive outcomes of Industrial Production and Manufacturing Production.
However, the Cable refrains from further declines beneath the key support on Monday as investors await fresh major clues from either the UK’s political front or from the US-China topic to extend the south-run.
Some among the latest headlines suggest that the UK politicians are secretly plotting to have the Prime Minister Boris Johnson ousted to stop the no-deal Brexit if he loses earlier September’s no-confidence vote. Additionally, the PM Johnson’s Ireland visit again turned negative for him as his Irish counterpart Leo Varadkar keeps his stand to not renegotiate the Irish backstop.
Moving on, investors will keep an eye over the trade/political news for fresh impulse as the economic calendar is a bit lighter today.
Technical Analysis
Unless clearing a year old descending trend-line, at 1.2080 now, prices are less likely to aim for 1.2200 resistance, which in turn highlights 1.2000 as the key support holding the keys for extended declines towards 2016 low surrounding 1.1810.
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