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  • Absence of immediate challenge to PM May’s position and promise to have a Brexit deal pleased the cable buyers.
  • The cross-party Brexit talks are still in limbo and may keep fuelling uncertainty.  

The GBP/USD pair is mildly bid around 1.3010 after positive news from the UK’s political platform started pleasing the British Pound (GBP) buyers on early Thursday.

The pair remained on the back foot on Wednesday as not only failed to have any progress in cross-party Brexit talks but uncertainty surrounding PM May’s position also weighed on the sentiment.

However, the market mood changed off-late after Bloomberg reported that Tories have stepped back from altering rules to challenge the UK Prime Minister Theresa May’s position.

The optimism strengthened further with the Financial Times report claiming that PM May promised to have fresh Brexit deal on the parliament’s voting table in the next two week.

Looking forward, absence of economics on the British calendar could push pair traders to concentrate more on the political developments surrounding the UK, be it Brexit or PM May.
It should also be noted that the start of the key US-China trade talk is likely to grab most market attention amid growing calls for no deal scenario.

Global risk tone remained unchanged as the 10-year US treasury yield holds 2.485% mark after recovering nearly 2.5 basis points on yesterday.

Technical Analysis

Should the quote manage to hold its pullback off 100-day simple moving average (SMA) level of 1.3000, it can run up towards 50-day SMA level of 1.3100 with 1.3115 and 1.3180 being following levels to watch during the further rise.

Alternatively, pair’s break beneath 1.3000 can recall 1.2960 figure comprising 200-day SMA whereas 1.2930 and April bottoms near 1.2865 could gain sellers’ favorites afterward.