GBP/USD: Buyers and sellers jostle near 1.3300 amid Brexit reports, Fed expectations

PM May’s ability to get over with the third proposal in the UK parliament remains highlighted after no-deal Brexit is off the table.
Speculations concerning dovish Fed, weaker UK growth also gain market attention.

Anil Panchal FXStreet

The GBP/USD pair clings to 1.3300 ahead of London open on Monday. The quote struggled between optimism surrounding soft/delayed Brexit, doubts over the UK economic growth and expectations that the US Federal Reserve may end up revising its plan to fewer rate hikes in 2019. While developments concerning Brexit could dominate major moves, the US NAHB housing market index might offer intermediate trading opportunities.

With the British members of parliament (MPs) rejecting a no-deal Brexit, chances of the UK’s hard exit from the EU drifted lower and helped the British Pound (GBP) register gains across the board.

Though, there are challenges to the UK PM Theresa May’s position as some 40 lawmakers unite against her third Brexit proposal and show readiness to turn it down if PM May doesn’t resign by April. On the positive side, UK Finance Minister Philip Hammond was noted saying by the BBC that significant numbers of the MPs support May’s plan.

Additionally, the British Chambers of Commerce (BCC) cut its 2019 gross domestic product (GDP) forecast for the UK economy to 1.2% from 1.3% estimated earlier.

On the other hand, the US Dollar was weighed down after Bloomberg reported that the expectations the Fed will revise its plan for a median projection down to just one rate hike in 2019.

The UK PM May has only three days to get parliament support if she wishes to join the EU summit on Thursday, which in turn highlights Brexit developments prior to that. Also in the limelight will be current month NAHB housing market index from the US that’s expected to print 63.00 figure versus 62.00 prior.

GBP/USD Technical Analysis

While 1.3345/50 acts as an immediate upside barrier for the pair, 1.3410 becomes strong resistance that holds the gate for the quote’s rise to 1.3500.

Alternatively, 1.3220 and 1.3200 could provide immediate support to the pair, a break of which may recall 1.3130 support level on the chart.

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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