GBP/USD remains little changed to 1.2730 as Brexit doubts supersede USD pullback

Odds against PM May’s Brexit proposal winning through the parliament are rising.
USD pullback gained little attention amid light economic calendar to follow.

Anil Panchal FXStreet

With the doubts over the UK PM May’s Brexit plan’s another failure at the parliament growing strong, the GBP/USD pair trades near 1.2730 during early Monday.

The Cable couldn’t take advantage of the recent US Dollar (USD) pullback as absence of successful cross-party talks and early signal from the UK Telegraph that the current Brexit plan is the same as the previous one indicate tough road ahead for the UK PM Theresa May in getting her proposal through the British parliament during the week starting from June 03.

The UK Telegraph said that a leaked document of PM May’s Brexit proposal signals no change on customs arrangements and retains the controversial Northern Irish backstop.

Recently, the greenback remained under pressure as tensions surrounding the US-Iran and the US-China political relations grew.

Looking forward, the thin economic calendar could push traders to observe PM May’s efforts to get her deal preferred among the British lawmakers.

Technical Analysis

Even if 14-day relative strength index (RSI) indicates oversold conditions, a break of 1.2700 support could drag the quote towards January 15 low near 1.2670.

On the upside, 1.2770, 1.2800 and April low near 1.2865/70 could continue limiting the pair’s near-term advances.

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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