GBP/USD refrains from further declines amid UK’s political optimism

Not only UK PM May but senior British personalities also trying hard to turn down no deal Brexit.
Qualitative catalysts to remain in the spotlight due to a lack of economic data/events.

Anil Panchal FXStreet

With the recent change in political environments at the UK, the GBP/USD pair is taking the bids near 1.2730 while heading into the London open on Tuesday.

The Cable weakened off-late as the British PM Theresa May could neither gain any solution from the cross-party Brexit talks nor please lawmakers with the promise to present a “new, bold offer” with “an improved package of measures”.

As per the BBC report, leaked documents suggesting no major changes in the PM May’s Brexit proposal that will be up for voting in the UK Parliament during the week starting from June 03.

However, the sentiment changed after some of the top-tier British personalities like Finance Minister Philip Hammond, Foreign Secretary Jeremy Hunt and the Bank of England’s (BOE) Deputy Governor for monetary policy Ben Broadbent warned lawmakers of negative consequences of no-deal Brexit.

The UK PM May is also on her best efforts to gather support from Tory members while her Irish friends stand firm during the tough time.

Given the latest swift in British politics and lack of data from the UK, investors are more likely to follow qualitative factors concerning Brexit, US-China and US-Iran topics in order to determine near-term trade sentiment.

Technical Analysis

Repeated failures to slip beneath 1.2710 can trigger the quote’s upside momentum targeting February month low near 1.2770 and then the 1.2800 round-figure.

Should there be a downside under 1.2710, sellers may wait for a sustained dip below 1.2700 to aim for January 15 bottom around 1.2670 and 1.2600 numbers to the south.

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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