GBP/USD stuck near 1.2800 as Brexit anxiety turns the page
|- Empty calendar for Tuesday sees focus on Brexit front-and-center.
- Bulls will be hoping for Brexiteers in the UK's parliament will break their deadlock to accept the current Brexit deal.
The GBP/USD pair finds itself trading just above the 1.2800 major technical level heading into Tuesday's London market session after last weekend's successful EU Brexit summit saw the Cable surprisingly unsupported, with broad-market Greenback shorting in the early Monday sessions helping to drive the Pound up to a peak of 1.2865, but risk flows couldn't hold and the US Dollar regained market position, taking the Cable back to near-term lows close to the 1.2800 handle, and Brexit tensions could begin to rise once again as the real challenge is seen in the House of Commons Brexit vote just around the corner.
December 11th has been slated as the day that the UK's parliament votes on Prime Minister Theresa May's current Brexit plan, and tensions can be expected to rise, with the hard-line eurosceptic Brexiteers that populate PM May's own Tory party are promising to vote down May's proposal. PM May has also seen her support in minor groups including the Irish DUP evaporate in recent weeks, and it is unclear if the PM has the support necessary to pass a successful Brexit agreement on her home turf, and a flat rejection of the current Brexit agreement could see the Sterling headed for a messy hard-Brexit scenario.
GBP/USD Levels to watch
Brexit tensions have been a steady weigh around the neck of the Cable, and as FXStreet's own Mario Blascak, PhD noted: "the GBP/USD is still moving in a downward sloping trend, with a little boost on the upside after the weekend Brexit deal approval. The Momentum and the Relative Strength Index both remain in the neutral zone and the Slow Stochastics made a bullish crossover in the oversold territory. Together with the golden cross of a 50-day moving average crossing over a 100-day moving average to the upside, the indicators are pointing rather to the upside for GBP/USD. The GBP/USD needs to break above 1.3000 to signal a trend reversal targeting 1.3060 before moving to 1.3380 and 1.3460 important Fibonacci level."
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