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.

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