- Cable approaches 1.3100 on data, session highs.
- UK manufacturing PMI surprised to the upside in March.
- More ‘indicative votes’ in the pipeline later today.
The upbeat mood around the Sterling remains well and sound today in line with the generalized sentiment in the riskier assets and is now lifting GBP/USD to the vicinity of the 1.3100 handle.
GBP/USD bid after data, looks to Brexit
Cable moved higher and tested tops in the vicinity of 1.3100 the figure following a better-than-expected print from UK manufacturing PMI, coming in at 55.1 for the month of March vs. February’s 52.1.
In the meantime, the British Pound is expected to remain in centre stage this week ahead of today’s new round of ‘indicative votes’, as MPs continues to seek options to end the current deadlock around the Brexit negotiations.
It is worth mentioning that none of the already voted motions on March 27 reached a majority, although the most favoured ones were a customs union and a referendum on any deal.
What to look for around GBP
Upcoming votes on alternative ideas to the UK-EU divorce put forward by MPs will grab further attention later today while another meaningful vote has not been ruled out. In addition, speculations over the continuation of Theresa May at Number 10 remain on the rise, adding at the same time extra uncertainty and volatility around the onoging talks. On another front, there is no news from the Bank of England following the last meeting, although the cautious stance remains well in place in light of the current Brexit negotiations.
GBP/USD levels to consider
As of writing, the pair is gaining 0.44% at 1.3091 and faces initial resistance at 1.3164 (21-day SMA) seconded by 1.3350 (high Feb.27) and then 1.3380 (2019 high Mar.13). On the other hand, a breach of 1.2976 (low Mar.29) would expose 1.2960 (low Mar.11) and finally 1.2922 (100-day SMA).
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