GBP/USD struggles to hold latest recovery amid Brexit pessimism
|- Brexit deadlock continues to restrict the GBP upside.
- The US GDP data is in the spotlight for now.
The GBP/USD pair is trading near 1.2900 during initial Asian sessions on Friday. The quote recently bounced off 1.2870 as markets remain cautious of the US Dollar (USD) buying ahead of today’s US GDP. Though, the pullback couldn’t last long due to negative headlines from the UK.
Even if the US Dollar (USD) lost some ground against rest of major currencies, the British Pound (GBP) remained under pressure as news of stalled cross-party Brexit talks continued dragging the quote downward.
During early Friday, the Financial Times reported that the UK PM May will now avoid putting her Brexit proposal in the British parliament for voting ahead of the EU election.
While the absence of major UK data could push the Pound traders to follow Brexit headlines for fresh impulse, a preliminary reading of the first quarter (Q1) 2019 gross domestic product (GDP) from the US will be an important catalyst for global investors to follow.
The US Q1 2019 annualized GDP might witness a bit of pullback to 2.1% from 2.2% prior. However, the latest data from the US have been upbeat and chances of an upside surprise are much brighter.
Technical Analysis
While pair’s slip beneath 1.2870 highlights 1.2830 and February low near 1.2770, 1.2920 can entertain short-term buyers ahead of challenging them with 100-day and 200-day simple moving average (SMA) confluence near 1.2965/70.
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