- The British MPs again rejected Brexit proposals in indicative voting.
- Another political disarray for the UK’s departure from the EU.
GBP/USD seesaws around 1.3050 at the start of the Asian trading session on Tuesday. The Cable drops more than 50 pips after the UK secretary Stephen Barclay said no solution has won a majority. The GBP/USD pair earlier rose on expectations that the members of parliament (MPs) could break the current political deadlock.
Despite the US Dollar’s (USD) overall gains on receding recession fears due to upbeat ISM manufacturing data, the greenback failed to rise versus the British Pound (GBP) on Monday. The result being market speculations that the House of Commons will deliver a solution to Brexit deadlock after British lawmakers continue to reject PM May’s proposal while fail to support any of the parliament’s options in the first go.
However, UK MPs pour cold water on those expectations as results came out before few minutes show none of the four Brexit proposals were welcomed by the parliament voters.
While another failure to deliver any meaningful direction to the Brexit process highlights brighter chances of a no deal Brexit on April 12, the House is of view that they can still avoid that situation if they again vote on the PM May’s deal on this week.
With the political event over, traders may now concentrate on the UK Markit construction PMI and the US Durable Goods Orders for further direction.
The UK Markit Construction purchasing managers’ index is likely to strengthen to 49.8 from 49.5 but still remain in contraction region under 50 whereas the US durable goods order could slip to 1.8% from revised +0.3%. Also, non-defence capital goods orders ex-air crafts may have 0.0% growth during February.
GBP/USD Technical Analysis
The GBP/USD pair couldn’t hold its upside break to 50-day simple moving average (SMA) and is likely coming down towards 200-day SMA level of 1.2980 with 100-day SMA level of 1.2925 being following rest to watch.
Alternatively, 1.3155/60 and 1.3210 can limit the quote’s immediate upside ahead of 1.3280 and 1.3315 resistances.
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