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.

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 assets. 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 Open Markets 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggles despite US-China trade truce, focus on German inflation

EUR/USD is on the defensive, but holding above the 200-day moving average. Reports of US-China trade truce are boding well for the US Dollar. An above-forecast German CPI could yield a rally in EUR/USD. 


GBP/USD: Less attention to UK politics as all eyes on trade headlines

UK political hustings, statements from MPs couldn’t lure the GBP/USD traders. Markets await fresh headlines from the G20 meeting for fresh impulse. US data can offer intermediate trade opportunities.


USD/JPY extends the break above 108.00 on US-China trade truce news

The latest reports of a US-China trade truce triggered a renewed risk-on wave and knocked-off the Yen, with the USD/JPY pair now extending its break above the 108 handle while the focus shifts towards the US Q1 final GDP data for fresh impetus.  


Gold: Off 6-year highs, but breakout on monthly chart a done deal

With the 14-day relative strength index (RSI) still holding well above 70.00, the yellow metal may drop below $1,400 in the next 24-36 hours. Also, reports of temporary US-China trade truce could weigh over the safe haven metal.

Gold News

US Q1 GDP Final Revision Preview: Look ahead not behind

The second revision and third version of first quarter annualized GDP is expected to be unchanged at 3.1%. The initial release was 3.2%. The unexpected strength of the US economy in the first quarter came after a successful 2018.

Read more