- Growing concerns for the Fed’s dovish appearance on Wednesday propel the GBP/USD pair upwards.
- Data from the US and the UK could offer near-term trade direction ahead of FOMC.
The GBP/USD pair is on bids near 1.3280 ahead of London open on Tuesday. The quote lost grounds on Monday as the UK PM Theresa May’s third proposal for Brexit was stopped from getting voted on Tuesday. However, growing concerns that the US Federal Reserve may emphasize more on accommodative policy gained market attention on Tuesday and has been fuelling the quote upwards. While on-going drama concerning Brexit could offer intermediate moves, traders may look for the British employment details and the US factory orders for nearby direction.
On late-Monday, speaker of the UK parliament said that the PM May’s third Brexit proposal can’t be put for a vote unless a different one was submitted. As a result, today’s expected meaningful voting on third Brexit proposal is off the card and May has to visit Thursday’s EU summit without any deal on hand to request an extension of the March 29 deadline.
Latest Brexit headlines suggest PM May could ask for 9 to 12 months of extension from the deadline versus the EU’s preparedness for three months’ stretch. Also, some among the Tories are readying for a strike unless Mrs. May announces her resignation by April. Hence, Brexit is all the more getting noisy day by day.
An absence of meaningful vote highlights today’s employment details from the UK that comprises average earnings and unemployment rate details for January and February month claimant count data. Forecasts suggest no change into the 4.0% unemployment rate and 3.4% average earnings excluding bonus. Though, claimant count change is expected to weaken to 3.7K from 14.2K while average earnings could soften to 3.2% from 3.4%.
On the other hand, the US Factory order growth for January month may increase to .3% from 0.1% prior.
The US Federal Reserve is up for releasing results of a two-day monetary policy meeting on Wednesday. Market consensus is recently on the rise that weakness in the US data can push the FOMC towards a single rate-hike that previously anticipated two.
GBP/USD Technical Analysis
A weeklong ascending trend-line may offer immediate support to the pair near 1.3200 round-figure while break of which can drag the quote toward 1.3110 and then to 50-day simple moving average figure around 1.3040.
On the upside, 1.3280 and 1.3360 could limit short-term price-run whereas 1.3385 holds the gate for 1.3410, 1.3450 and 1.3500 resistances.
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