GBP/USD finds support above 1.3160, remains steady despite Brexit and political developments

  • Pound ends with modest losses across the board despite Brexit and political uncertainty. 
  • GBP/USD sideways, after being unable to hold clearly on top of 1.3200. 

The GBP/USD pair is about to end the day hovering slightly below 1.3200, posting modest losses for the day. Earlier today peaked at 1.3243, the highest level since last Wednesday but the pulled back finding again support above 1.3160. 

UK Prime Minister Theresa May addressed Parliament today mentioning there is not enough support among MPs for a third attempt to vote her Brexit deal negotiated with the EU. Speculation and rumors are on the rise. A set of votes relates to Brexit will take place during the Asian session with an unknown result and significance. Despite all the drama, the pound dropped only modestly, moving most of the day sideways. 

GBP/USD Technical outlook

“In the short-term, the pair is neutral-to-bullish, given that, in the 4 hours chart, a directionless 20 SMA acted as a dynamic support throughout the day, rejecting bears. Technical indicators in the mentioned chart are now pivoting around their midlines with limited directional strength”, says Valeria Bednarik, Chief Analyst at FXStreet.
According to her, hopes prevail despite the Brexit mess, that the UK will avoid a hard landing, therefore keeping the downside limited for the Pound. “A long term ascendant trend line coming from January's low comes at around 1.3110 this Tuesday, with bears having more chances on a break below it.”


 

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