GBP/USD: Oversold RSI calms the bears around 3-month low, UK politics in the spotlight

  • The UK PM Theresa May to give details of her resignation only after the upcoming Brexit proposal vote.
  • A lack of data continues to highlight British politics for the pair traders.

Having witnessed sustained downturn since the week start, GBP/USD stops the bears around 1.2800 during early Friday.

The British Pound (GBP) recently came under pressure as cross-party Brexit talks continue to fall short of providing any solution while the UK PM Theresa May is being repeatedly pushed to outline her departure timetable.

As per the latest news reports, the British PM May met headline Tories and leader of the 1922 committee, Sir Graham Brady, in order to give details of her departure.

However, Mrs. May remained stuck to her previous commitment that she’ll give exact details after fourth voting on her Brexit proposal that is scheduled for the week starting from June 03.

With the little details on hand, the GBP/USD pair traders may concentrate more on the Brexit developments and the US Michigan consumer sentiment index for May month. Also, speeches from some Fed members, namely Federal Reserve Governor Richard Clarida and the President of Federal Reserve Bank of New York John C. Williams, will also be observed.

Technical Analysis

The mid-February low near 1.2775, followed by 1.2700 round-figure, could offer nearby support to the pair, a break of which can recall January lows near 1.2670.

Alternatively, April bottom near 1.2865 can limit immediate upside which if broken could recall 1.2930 and 200-day simple moving average (SMA) level of 1.2960 on the chart.

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