GBP/USD bounces off 200-day SMA as Brexit regains market attention after Easter break

Developments surrounding Brexit will gain major attention as the UK lawmakers return to the parliaments after a long Easter recess.
Recent news of cross-party talks triggered the pair’s pullback from the important support.

Anil Panchal FXStreet

The GBP/USD pair is on the bids near 1.2980 during the early Asian session on Tuesday. In spite of Easter recess at the UK parliament, the Cable recently weakened as chances that the British PM Theresa May will be ousted from her power grew. However, the latest news of the cross-party Brexit talks pleased the British Pound (GBP) buyers.

Ever since the UK parliament members went on an Easter recess that started from April 11, GBP/USD refrained from registering fresh positive moves. The British lawmakers are to rejoin the parliaments on April 23, i.e. today.

Though, talks of failure in cross-party Brexit talks and speculations over PM May’s departure from her seat continued to drive prices downwards.

Recently, The Sunday Times reported that a senior Conservative member is likely to ask the British PM May to resign from her position by June, failure to which can force the party to chose another leader. The news report was well received with the GBP’s decline.

During initial Tuesday, The Independent reported that PM May will restart cross-party Brexit talks form Tuesday as she faces pressure to quit.

Although there prevail no major data from the UK that’s up for release today, the return of the British lawmakers to the parliaments and second-tier statistics from the US, like housing market numbers and Richmond Fed Manufacturing Index, could entertain the GBP/USD traders.

GBP/USD Technical Analysis

200-day simple moving average (SMA) level of 1.2970 and 100-day SMA figure of 1.2960 can act as important supports, a break of which highlights 1.2930, 1.2910 and 1.2880 to reappear on the chart.

On the upside, 1.3000 and 1.3030 can entertain short-term buyers whereas a descending trend-line stretched from mid-March, at 1.3055, and 50-day SMA level of 1.3100 may please Bulls then after.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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