GBP/USD seesaws near 1.2910 as Brexit uncertainty plays its role

Brexit pessimism refrains from respecting data.
The Cross-party talks continue to lag behind market expectations.

Anil Panchal FXStreet

GBP/USD pair couldn’t benefit from yesterday’s employment data from the UK as doubts concerning the Brexit remain dominant market mover and pushes the quote near 1.2910 during early Wednesday.

Despite witnessing the lowest unemployment rate since 1974 and renewed cross-party Brexit talks, the British Pound (GBP) failed to please buyers amid growing tension over the disagreements between the two parties to the Brexit talks.

Recent developments concerning the Brexit suggest that the UK PM Theresa May will put forward her Brexit proposal for a vote in the parliament during the week beginning on June 03. Though, the opposition Labour party is still challenging the optimism by sticking to their own demands.

Looking forward, the US retail sales seems to be important data to watch over as there isn’t anything particularly important from the UK’s economic calendar.

The US retail sales control group may register 0.4% growth over 1.0% prior while headline retail sales could print 0.2% mark versus 1.6% previous readout on a monthly basis. Further, retail sales ex-autos, also known as core retail sales, is expected to register a weak growth figure of 0.7% compared to 1.2% earlier.

Technical Analysis

An upward sloping trend-line stretched since mid-February could offer immediate support at 1.2890 ahead of highlighting April lows near 1.2860 to sellers. Also, the pair’s break of 1.2860 opens the door for the fresh downside to 1.2830 and 1.2770 numbers to the south.

Meanwhile, 200-day simple moving average (SMA) around 1.2960, followed by 1.3000 round-figure and 1.3010 comprising 100-day SMA, could restrict the quote’s nearby upside.

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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