GBP/USD: Modestly flat ahead of UK Chancellor’s visit to Berlin
|- GBP/USD stabilizes after Thursday’s recovery.
- The opposition Labour party leader Jeremy Corbyn struggles to become the interim PM.
- Sajid Javid becomes the first from Johnson and Company to visit Berlin and discuss Brexit today.
Following its data-backed recovery, the GBP/USD pair trades modestly unchanged to 1.2090 while heading into the London open on Friday.
Thursday’s UK Retail Sales data provided firm support to the Cable despite political uncertainty at home. However, overall market support to the US Dollar (USD) restricted pair’s upside.
As per UK Express, around 50 members of the opposition Labour party are ready to join Tory rebels to stop no-deal Brexit while the Sun previously quoted few lawmakers regretting to turn Theresa May’s Brexit for the third time. On the positive side, Jeremy Corbyn is facing troubles as he stands firm to become the interim Prime Minister (PM) in a case they win a no-confidence vote during early September.
Further, the US President Donald Trump signalled brighter chances of strong trade ties with the UK under PM Boris Johnson and his team.
Looking forward, British Chancellor of Exchequer Sajid Javid will travel to Berlin today as the first from the PM Johnson’s team. He will meet Germany’s finance minister Olaf Scholz and will discuss Brexit deal as well.
While lack of data from the UK will push traders to closely observe Brexit headlines for fresh directions, July month Housing Starts and Building Permits, coupled with the Michigan Consumer Sentiment Index for August, from the US will keep filling the momentum. Forecasts suggest the US housing market numbers to keep portraying robust picture but an expected pullback in consumer sentiment gauge may stop the greenback from the further rise.
Technical Analysis
1.2105/10 comprising 200-hour moving average (HMA) seem nearby key resistance holding the gates for 1.2160 and 1.2210 while 1.2071/70 support confluence including 100-HMA and 23.6% Fibonacci retracement of July 31 to August 11 downpour can limit immediate declines.
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