GBP/USD stuck around 1.3030, trade and Brexit details awaited
|- GBP/USD remains around 1.3030 before London open on Friday.
- Mixed outcomes from the Brexit and trade deal between the US and China confine the pair moves.
- Friday’s Trump-He meet and PM May’s weekend meetings with the EU officials will be observed for further direction.
GBP/USD trades modestly flat around 1.3030 while heading towards European open on Friday. The pair declined during the last two days on Brexit pessimism, contrast to upbeat sentiment favoring the US-China trade deal. However, there has been less movement since today morning as investors await further details on the two critical issues discussed.
The UK Prime Minister Theresa May visited the European Union Commission chief Jean-Claude Juncker and both the leaders said they are making progress towards solving Irish backstop issue. Assuring the progress, the British finance minister Philip Hammond said that talks with Brussels had been constructive and that lawmakers could vote on a revised deal as early as next week. However, several members from the ruling and the opposition party quit recently and there were challenges to the talks from the EU.
On the USD side of the equation, the welcome progress on the first day of Chinese Vice Premier Liu He’s Washington visit ward of the negatives emanating from data miss by the Philly Fed manufacturing index and Markit manufacturing purchasing manager index.
Looking forward, the UK PM May will be meeting a few other EU leaders over the weekend in order to provide last ditched efforts to secure a Brexit deal that can be passed through parliament.
Meanwhile, the US President Donald Trump will also meet Liu He during Friday afternoon and may push the US-China deal forward. It should also be noted that no major economics are scheduled for release during Friday from either the UK or the US.
GBP/USD Technical Analysis
The 200-day simple moving average (SMA) level of 1.3000 works as immediate support for the pair, a break of which may drag prices to the 1.2960 and 1.2910 levels.
On the upside, 1.3100 and 1.3140 could limit the pair’s near-term advances before diverting buyers towards 1.3215.
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