GBP/USD analysis: May's victory ephemeral, Lords reverse vote on 'meaningful vote'

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3250

UK House of Lords defeats government on 'meaningful vote', back to commons.
BOE to meet this week, Super Thursday, however, expected to offer nothing new.

The GBP/USD pair settled at 1.3250, down for the day but above its daily low and Friday's one. The Pound continued suffering from Brexit woes, as the UK government got defeated at the House of Lords this Wednesday, over plans to give the lawmakers 'meaningful vote' on the final Brexit deal. The divorce bill will now go back to the House of Commons for another vote on Wednesday. Tensions between Lords and the government continue as the policymakers want to keep the UK close to the EU after the Brexit, while PM May government vogues for a harder Brexit. There were no macroeconomic releases in the UK, although the British Chambers of Commerce has cut its UK growth forecast for this year to 1.3% from the previous 1.4%, warning that the economy faces its weakest year since the financial crisis. The 4 hours chart for the pair shows that it remains well below a bearish 20 SMA, while technical indicators have managed to post modest bounces from near oversold readings, still far below their midlines and therefore from suggesting a possible recovery ahead. The main support is Friday's low at 1.3210, with a break below the level probably triggering a steeper decline for this Tuesday.

Support levels: 1.3210 1.3170 1.3135

Resistance levels: 1.3300 1.3345 1.3390

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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