GBP/USD seesaws near 1.3070 as Brexit uncertainty remains in play

  • Brexit pessimism keeps challenging the GBP/USD trade sentiment.
  • 1.3120 and 1.3050 seem immediate trading range to watch with 1.3160 and 1.3000 being follow-on levels to observe.

The GBP/USD pair remains little weak near 1.3070 during early Asian session on Monday. Despite parliaments recess, negative headlines for the Brexit continued playing their roles in challenging the Cable buyers. However, the overall recent weakness of the US Dollar (USD), coupled with a lack of data, might be keeping the floor capped.

Off-late, soft data and upbeat equities from the US propelled risk-on and also weighed on the greenback.

The UK parliaments are on the Easter recession till April 23 but the British Prime Minister Theresa May has urged lawmakers to use their vacation for the betterment of Britain despite the EU recently allowed Brexit deadline extension till October 31.

The cross-party talks on the Brexit are going nowhere as latest news report concerning the same from the Guardian confirms that the opposition Labour party says Brexit talks ‘will stall unless May shifts on customs union’.

While Brexit uncertainty is already weighing on the GBP/USD pair during initial trading, dovish comments from an external monetary policy member of the Bank of England (BOE), Jonathan Haskel, could provide additional weakness to the Cable.

Moreover, the likely positive print of the US NY Empire manufacturing index to 9 from 3.7 prior might also work on the negative side for the quote.

GBP/USD Technical Analysis

Repeated failures to cross 1.3120 portrays the GBP/USD pair’s weakness towards revisiting the 1.3050 and 1.3000 supports with 200-day simple moving average (SMA) level near 1.2980 being the follow-on important figure to watch.

On the upside clearance of 1.3120, 1.3160, 1.3220 and 1.3270 can entertain the bulls ahead of challenging them with the 1.3310-15 resistance-area.

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