GBP/USD trades with modest losses to 1.2060 amid Brexit negative headlines

Having slumped to a three-week low at the month-start, the GBP/USD pair takes the rounds to 1.2060 during Tuesday’s Asian session.

While increasing odds of October month snap election in the UK keep the British Pound (GBP) bears happy, recent headlines from the BBC and the UK Telegraph conveys comments from the key Brexit personalities, like Stephen Barclay and Dominic Cummings, which dimmed prospects of a trade deal with the EU.

Adding to the sentiment, Barclaycard shows that almost 1 in 5 people in Britain are stockpiling everyday items in case of future shortages while the UK BRC Like-For-Like Retail Sales dropped 0.5% YoY in August versus previous increase of +0.1%.

Investors now await the resumption of the British Parliaments as many cross-party Members of the Parliaments (MPs), including Tory rebels, stand ready to challenge the United Kingdom (UK) Prime Minister (PM) Boris Johnson’s pledge to leave the EU on October 31 with or without a deal.

Although the Tory leader has already warned Conservatives of another election in October if he fails today, the opposition Labour party leader Jeremy Corbyn puts his best efforts to make it happen.

Elsewhere, Chinese media is again on the front to criticize the Trump administration’s trade tactics while the US awaits the dragon nation’s use of the military in Hong Kong to flash a warning.

Not only UK politics but the return of the US traders after an extended weekend will also propel market liquidity.

Technical Analysis

Pair sellers now await the downside break August month low, near 1.2015, in order to target 2017 bottom surrounding 1.1987 whereas an uptick beyond 1.2100 round-figure could challenge 21-day simple moving average (DMA) level of 1.2145.