GBP/USD: Choppy inside immediate symmetrical triangle amid mild dossier of UK politics

  • One week-long symmetrical triangle portrays the GBP/USD moves despite increasing odds for no-deal Brexit.
  • UK PM likely witnessing no-confidence motion and/or forced to resign.
  • The Irish border isn’t the only issue to solve as far as the Brexit is concerned.

Increasing calls for the Brexit deal change and fresh doubts over the PM Johnson’s future fail to propel the GBP/USD pair as it remains modestly unchanged near 1.2158 heading into Wednesday’s London open.

Even if the Irish Prime Minister (PM) requests the EU and the UK to discuss and solve the backstop issue, it doesn't seem the only barrier that can help overcome the departure problems as the UK Express reports British lawmakers demanding a complete revamp of the deal to justify the Brexit.

It should also be noted that the EU recently turned down renegotiation request whereas the Telegraph reports a plot against the UK PM Boris Johnson if he defies no-confidence motion.

On the other hand, the US-China trade tussle continues highlighting risk-off while recently dovish statements from the global central banks, like Reserve Bank of New Zealand (RBNZ) and Bank of Japan (BOJ), also stop market players from trading.

Absence of major data/event on the economic calendar and mild dossier of the UK politics amid a parliamentary recess are likely reasons behind the lack of momentum.

Moving forward, the UK’s July month Halifax House Price Index becomes the only data to watch. While MoM reading is expected to reverse previous -0.3% contraction with +0.3% mark, 3m/YoY figure could soften to 4.4% from 5.7%.

Technical Analysis

Traders will be on the lookout of breaking near-term symmetrical triangle, currently between 1.2205 and 1.2122/20, to aim for further moves to either 1.2250 or 1.2080 depending upon the breakout direction.

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