GBP/USD: Bulls and bears jostle near 1.3200 on Brexit developments

Optimism surrounding Brexit delay confronts the uncertainty over PM May’s post.
1.3070 continues to become important downside support with 1.3245 acting as immediate resistance.

Anil Panchal FXStreet

The GBP/USD pair is mild bid around 1.3210 during early Asian sessions on Monday. While the EU’s preparedness for an unconditional Brexit extension till April 12 pleased some of the British Pound (GBP) buyers during later last-week, expected coup against the UK PM Theresa May is something that pleases the bears. There are no major details/events scheduled for publishing from the Britain whereas speeches from the Fed policymakers and some second-tier details could offer intermediate trade direction. Though, developments surrounding Brexit could keep being in limelight.

The EU leaders agreed for Brexit deadline extension from March 29. They offered unconditional delay till April 12 by then the PM May needs to get the UK parliament approval for the Brexit proposal in order to avail another tranche of extension till May 22.

Back at home, PM May was criticized for blaming members of the parliament (MPs) for Brexit delay. As per the latest news from the BBC, PM May is under growing pressure to quit her position. However, both the likely caretaker PM say they fully back May and cut the strength of a coup.

While developments surrounding how PM May could please MPs to support her Brexit deal when they are already plotting for her exit could entertain traders, comments from the Fed policymakers and some data from the US would also be important to watch.

Federal Reserve Bank of Chicago President Charles Evans and that of Federal Reserve Bank at Philadelphia, Patrick T Harker, are up for their public appearances during Monday morning.

Also, February month Chicago Fed national activity index is scheduled for publish at 12:30 GMT. The sentiment gauge earlier dropped to -0.43.

GBP/USD Technical Analysis

Descending trend-line joining recent highs around 1.3245 acts as immediate upside barrier for the GBP/USD pair, a break of which can propel the quote towards 1.3300 resistance.

On the downside, 1.3180 and 1.3110 can please sellers ahead of challenging them with a twelve week old upward sloping support-line at 1.3070.

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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