GBP/USD captures ground early, but struggling to remain dedicated above 1.3550

  • Sterling catches a lift on positive Brexit news, but volatility is still a risk play.
  • US Dollar is becoming difficult to trust as market sentiment twists.

The GBP/USD is walking back slightly after catching a bump through the early Asia session on news that a "hard Brexit" scenario may be avoided, but the pair is falling back into the 1.3550 ahead of the London markets.

The UK's Parliament has announced they will be telling the European Union they are planning to stay in the European customs union, a move that averts the risk of a hard-Brexit scenario, but will leave hard-line Brexiteers riled up. The move also belies the disorganization within the British Parliament as concessions and agreements become increasingly difficult to secure for Prime Minister Theresa May.

UK manufacturers attack post-Brexit customs plan - FT

The calendar is clear for Thursday's markets and the Sterling has to contend with a shifty Greenback, which is flopping risk sentiment as US Treasury yields hit multi-year highs and trade talk between the US and China continues to remain inconclusive.

GBP/USD levels to watch

With the Sterling continuing to spread its bets within a technical range for most of May, the pair is split on technicals, and as FXStreet's Omkar Godbole noted about the pair's technical barriers, "immediate resistance is seen at 1.3618 (May 10 high) ahead of 1.3712 (March 1 low) and 1.3765 (Feb. 9 low). On the downside, support is seen at 1.3529 (5-day MA), 1.3483 (Asian session low) and 1.3451 (May 15 low)."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.