GBP/USD analysis: PM May warns of risk of "no Brexit at all"

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3234

UK PM May warned that, either MPs back her up, or if not, "we risk ending up with no Brexit at all."
House of Commons to review government's trade bill this Monday.

The GBP/USD pair recovered from its weekly low of 1.3102 to settle at 1.3234, helped by broad dollar's weakness in the last trading day of the week, this last fueled by profit-taking. The Pound suffered from Brexit jitters these last few days, as the White Paper presented by the UK government was much softer than what Brexiteers wanted, triggering a batch of resignations that put May's leadership under scrutiny, again. Helping the Sterling recovery ground were comments from US President Trump, who said that a trade deal with the UK post-Brexit is still possible, after commenting against it earlier in the week. On Sunday, PM May warned that, either MPs back her up, or if not, "we risk ending up with no Brexit at all," according to her own words, as there is no other "workable alternative" for a future trade relationship. This Monday, the House of Commons will review the government's trade bill, and May hopes there won't be amendments to it. A clean vote that supports her strategy will likely help the Pound advance. Technically, however, the upward potential remains limited according to technical readings in the daily chart, as the pair hovers around a flat 20 SMA while technical indicators are stuck to their midlines, now aiming higher but with no actual strength. Shorter term, and according to the 4 hours chart, technical indicators lost upward strength around their midlines after correcting oversold conditions, while the price settled a few pips above a mild bearish 20 SMA, also indicating limited buying interest.

Support levels: 1.3180 1.3155 1.3110

Resistance levels: 1.3240 1.3285 1.3320

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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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