GBP/USD trimming the hatches with Brexit vote around the corner

Sterling traders pushed into the middle ahead of UK parliament's Brexit vote.
After Brexit deal vote, plenty of high-impact data remains on the week.

Joshua Gibson FXStreet

GBP/USD is trading softly lower into 1.2840 as investors turn their eyes to tomorrow's critical parliamentary vote on PM May's Brexit withdrawal proposal, which is expected to face resounding defeat.

Monday brings little action on the economic calendar, but Tuesday's parliamentary vote will see traders keeping a close eye on headlines today as they try to find a safe place to stand ahead of the almost-guaranteed washout of Prime Minister Theresa May's current withdrawal deal, which is seen losing by a devastating margin in the House of Commons, after which PM May's government will have just three days to deliver an alternative plan, and Cable traders are buckling down ahead of the key vote.

The early week sees little of note on the economic calendar for both the Sterling and the Greenback, but after tomorrow's parliamentary vote plenty of action is still to come this week, with inflation figures for both currencies due, as well as headline Retail Sailes in the mid-week.

GBP/USD Levels to watch

Despite Brexit issues coming in a for a landing, Cable technicals are leaning higher, according to FXStreet's own Valeria Bednarik: "from a technical point of view, the daily chart offers a bullish stance, as the pair has held throughout the week above a bullish 20 DMA, now gaining upward traction around 1.2680, as technical indicators maintain their upward slopes in positive levels, although with limited strength. In the 4 hours chart, the upside is also favored, as despite losing upward momentum, technical indicators hold near their daily highs, while the pair develops above its 20 SMA and the 200 EMA. If the pair loses the 1.2800 level, however, the risk will turn to the downside, at least short-term."

Support levels: 1.2805 1.2760 1.2720
Resistance levels: 1.2865 1.2900 1.2945

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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