GBP/USD struggles around 1.3060 as investors await May-Juncker meet

  • The GBP/USD pair trades around 1.3060 ahead of the London open on Wednesday.
  • Investors remain cautious as the UK PM Theresa May heads Brussels to meet EU Commission chief Jean-Claude Juncker for Brexit talks.
  • The pair has 1.3080 and 1.3050 as immediate barriers with 1.3110 and 1.2990 likely following numbers to expected during either side break.

The British Pound (GBP) trades near 1.3060 versus the US Dollar (USD) heading towards European open on Wednesday. The pair struggles to extend previous moves as investors await details of the meeting between the UK Prime Minister Theresa May and the EU Commission chief Jean-Claude Juncker.

The meeting will be PM May’s one of many attempts to regain British politician’s support via a Brexit deal after her initial proposal was badly rejected in the parliament during last month.

Off-late the Irish border issue has been in limelight amid the EU’s unwillingness to re-negotiate the backstop option suggested by May whereas diplomats at home are searching for alternatives to the same.

During her visit to Brussels, PM May is expected to push Juncker towards re-negotiation and/or possible solution to the Irish border in order to win confidence at home.

The Guardian reported May expecting a breakthrough from a meeting whereas another UK daily, Evening Standard, reported that Juncker isn’t expecting any breakthrough from the fresh talks.

While confusing signs from both the leaders are increasing uncertainty for the GBP traders, any developments from the meeting would be taken seriously to determine near-term Pound moves.

On ther other hand, minutes of the US Federal Reserve's January 30 meeting will also play its role to direct near-term GBP/USD moves. The Federal Open Market Committee (FOMC) left monetary policy unchanged at the latest meeting but conveyed bearish bias towards furture policy moves. Traders will observe the minutes for details on how strongly Fed policymakers favor/unfavor Fed rate changes.

GBP/USD Technical Analysis

A sustained break of 1.3080 can enable the GBP/USD pair to aim for 1.3110 and then rise to 1.3135 but 1.3215 could challenge further upside.

On the downside break of 1.3050 immediate support, 1.2990 and 1.2940 may gain sellers’ attention.

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