GBP/USD: Optimism surrounding delayed Brexit and US Dollar weakness highlights 1.3270
- GBP/USD trades near 1.3235 before the London open on Monday.
- The pair has lately been supported by expectations of a delay in Brexit and weaker USD.
- 1.3270 is likely immediate resistance whereas 1.3190 may offer nearby support to the pair.
The British Pound (GBP) is on the bids near 1.3240 against its US counterpart (USD) while heading towards the European session on Monday. The GBP/USD pair took advantage of the latest headlines suggesting a delayed Brexit and the US President Donald Trump’s comments dragging the USD downwards. Investors may now pay close attention to the Brexit developments as the UK approaches the deadline to leave the EU region (as of now).
A slew of top-notch politicians from the UK and Ireland were on wires recently. Some of them, like the UK Attorney General Geoffrey Cox, showed the likeliness to ease conditions to please the EU officials whereas few others, like British Trade Minister Liam Fox and junior Justice Minister Rory Stewart, commented on the hopes of delayed Brexit. However, one thing that sounds common was higher chances that favor the British departure from the EU after the present deadline of March 29.
In addition to the Brexit positive, the US President Donald Trump’s criticism of the USD and the Fed also played its role to support the pair. Reuters reported that the US President Trump again showed his resentment toward the Fed policy that (in his opinion) supports stronger USD and is not favorable to the American economy.
Looking forward, the developments concerning the Brexit will be on the top watch-list for the GBP/USD traders. However, February month British construction purchasing manager index (PMI) could also offer intermediate moves. The UK construction PMI is likely to slip towards 50.2 from 50.6 registered in January.
GBP/USD Technical Analysis
With a downward sloping trend-line resistance restricting GBP/USD upside around 1.3270, the pair needs to cross it in order to aim for 1.3320 and 1.3350.
On the downside, 1.3190 and 1.3135 can act as immediate support for the pair ahead of dragging the quote to 1.3100.
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.
