GBP/USD analysis: UK government facing fresh Brexit headwinds

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3761

The House of Lords voted against May's will, to have their last saying on a Brexit deal.
UK April Manufacturing PMI to make some noise this Tuesday.

The GBP/USD pair fell to 1.3712 early London, but trimmed most of its daily losses and settled right below Friday's close. Pound's decline was triggered by news indicating that another member of May's cabinet resigned over mounting tensions about Brexit. This time it was the turn of Amber Rudd, who left after saying that she "inadvertently misled" MPs over targets for removing illegal immigrants. Former communities secretary, Sajid Javid was appointed as the new home secretary, shortly after. Later in the day, the UK government suffered another setback, as the Lords voted on a bill guaranteeing MPs a vote on a final Brexit deal. Ministers have warned multiple times that this may result in the UK leaving the UK with no deal. This Tuesday, the UK will see the release of the April Markit Manufacturing PMI, expected at 54.8 from the previous 55.1. The pair retains its bearish stance according to technical readings in the 4 hours chart, as the 20 SMA maintains a sharp bearish slope well above the current level, while technical indicators managed to correct extreme oversold readings, but lost upward strength far below their mid-lines. The pair bottomed at 1.3711 in March, which alongside with Monday's low makes of the area a major support for the upcoming sessions.

Support levels: 1.3710 1.3680 1.3650

Resistance levels: 1.3785 1.3820 1.3850

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.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.