GBP/USD on the bids around 1.3120 as Brexit headlines rule ahead of an active day

The British traders will be back from the extended weekend after Monday’s holiday.
Brexit shows mixed signals but buyers cheer positive outcomes from the cross-party talks.

Anil Panchal FXStreet

The GBP/USD pair is taking the rounds near the intra-day high of 1.3120 while heading into the London open on Tuesday.

Sellers ruled the trading sentiment on Monday’s May Day holiday at the UK as doubts over the Brexit proceedings questions previous buyers. The British traders will return to their desks today after an extended weekend.

Earlier on Tuesday, the Telegraph’s news was on the wires that there are many Tories who are united to oust the PM Theresa May if she seeks opposition Labour party’s support for her Brexit proposal.

However, speculations were also on the rise that the Labour and PM May have enough support to ignore backbenchers and get their Brexit deal through the UK parliament.

The Sun recently came up with a news report stating that the Brexit party leader Nigel Farage warned PM May that a soft-Brexit stitch-up would be the "final betrayal" of Brits who voted to leave.

Looking forward, the UK Halifax house prices and the US JOLTs job openings are likely data that may gain investor attention while Brexit headlines could keep playing background noise.

Additionally, developments surrounding the US-China trade might also affect near-term market moves.

The April month British housing figure may register increased contraction to -2.4% from -1.6% (MOM) while likely declining to 2.3% from 2.6% on a three-month to a yearly basis. Further, the US employment stat for March could please the greenback buyers with 7.240 million figure versus 7.087 million earlier.

Technical Analysis

Given the pair’s latest break of the 50-day simple moving average (SMA), 1.3130, 1.3180 and 1.3200 could be on the bulls’ radar ahead of targeting late-March tops near 1.3270.

Alternatively, 1.3050 can limit immediate declines of the pair ahead of highlighting 100-day SMA level of 1.2995 and 200-day SMA near 1.2965.

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.

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