GBP/USD: Buyers again target 4-week old resistance-line near 1.3130

  • The absence of fresh directives pushes the Pound buyers to benefit from overall USD weakness.
  • 1.3130 continues to be the key resistance to aim for 1.3160 and 1.3200.

The British Pound (GBP) is trading near 1.3100 versus the US Dollar (USD) ahead of the London open on Monday. The GBP/USD pair concentrated on the USD weakness amid lack of Brexit headlines. The US manufacturing data could be of immediate importance to the cable traders.

While sluggish consumer sentiment and upbeat earnings report from the US pushed investors to risk-on during Friday, markets carried the trend forward during early Asian sessions as the no fresh directives and the optimism surrounding the US-China trade deal remained in play.

It should also be noted that the UK parliaments are on the Easter recess till April 23 which in turn pushed traders off from Brexit headlines despite recent noise concerning cross-party talks.

Recently, Reuters reported that the US is softening its demand on the state industrial subsidies from China when it comes to the trade deal.

Even if Brexit headlines are to continue entertaining short-term traders, the monthly reading of the US NY Empire State manufacturing index may perform its role of the only economic data. The manufacturing gauge could rise to 6.0 from 3.7.

GBP/USD Technical Analysis

A downward sloping trend-line stretched since March 13, at 1.3130, can grab immediate attention of buyers, a break of which can recall 1.3160 and 1.3220 on the chart.

On the contrary, 1.3050, 1.3000 and 200-day simple moving average (SMA) level near 1.2980 are likely crucial supports for the pair traders to watch.

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