- Brexit headlines entertain traders ahead of next week’s parliament discussion on a new proposal.
- The US GDP and speech by BOE’s Ramsden will be watched for fresh impulse.
With the latest news report concerning the new Brexit deal crossing wires, the GBP/USD pair trades near 1.2630 during early Thursday.
The pair posted third back to back loss by the end of Wednesday as chances of hard/delayed Brexit continued to threaten the British Pound (GBP) optimists.
The UK’s Foreign Secretary Jeremy Hunt was the latest to support changed or no backstop in the new Brexit deal that will be up for discussion during the next week. He also emphasized the need to avoid a general election even if it costs Brexit delay.
On the other hand, the opposition Labour party leader Jeremy Corbyn was firm on his party’s support to call for a referendum on any Brexit deal to be up next week.
While Brexit headlines are here to stay for a bit longer than many expect, today’s speech by the Bank of England’s (BOE) Deputy Governor David Ramsden and the US preliminary reading of first-quarter gross domestic product (GDP) will be followed closely.
The BOE’s Ramsden is less likely to deviate from the central bank Governor who holds neutral policy bias due to Brexit uncertainty. The US, however, is likely to witness a soft GDP annualized figure of 3.1% from 3.2% prior.
Technical Analysis
Only if the pair declines under 1.2600, sellers’ can expect further downside towards 1.2480 and then to 2019 low near 1.2430.
During the upside, 1.2660, a week-long trend-line at 1.2700, 1.2760 and 21-day simple moving average (SMA) level of 1.2840 seem nearby resistances to observe.
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