GBP/USD clings to 1.3100 amid fewer Brexit headlines, UK jobs data in focus
- The fewer Brexit headlines confine Pound moves ahead of monthly employment data.
- The near-term trend-line resistance and 200-day SMA should grab market attention during additional moves.
The British Pound (GBP) trades little changed near 1.3100 versus the US Dollar (USD) during early Tuesday. The GBP/USD pair is on sidelines as Easter holidays at the UK parliaments confine Brexit developments after the nation received deadline extension till October 31. Though, headline employment details can serve as the main catalyst for today’s Cable moves.
There have been fewer Brexit headlines after the EU summit that allowed the UK to remain in the region till October 31 with a clause to leave early if manage to sign a divorce agreement. The reasons being, deadlock at the cross-party Brexit talks and Easter holidays at the UK’s parliament.
As per the latest news report from the Guardian, the government is under pressure to close down cross-party talks with the opposition Labour party in order to be ready with the deal before the EU election. The report said that No 10 is worried about losing to Nigel Farage’s Brexit party if appeared in the EU elections.
On the brighter note, Reuters reported that the UK Foreign Secretary Jeremy Hunt assured avoiding no-deal Brexit to the Japanese PM Shinzo Abe during his latest visit to Tokyo.
Moving on, February month average earnings and unemployment rate from the UK, coupled with claimant count change for March will entertain the Pound traders whereas March month industrial production from the US will stretch the moves forward then after.
The British average earnings may remain unchanged at 3.4% if excluding bonus but can increase to 3.5% from 3.4% given the bonus inclusion during three-month a year period closing in February. Further, the unemployment rate is also not expected to change from 3.9% during the earlier said period whereas claimant count change might decline to 20K from 27K in March.
Elsewhere, the US industrial production could rise +0.2% compared to revised +0.0% figure registered during February.
GBP/USD Technical Analysis
The five-week-old descending trend-line at 1.3115 acts as immediate resistance, a break of which can propel the moves towards 1.3200 and 1.3265/70 numbers to the north.
Alternatively, 1.3060 and 1.3010 could be considered as nearby strong supports ahead of watching over 200-day simple moving average (SMA) figure of 1.2975.
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.
