GBP/USD: Brexit regains market attention after Easter break, all eyes on 1.2970/60

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  • Resumption of the UK parliament proceedings could overcome Brexit deadlock.
  • An area between 1.2970-60 and 1.3050 might confine the pair’s near-term moves.

The GBP/USD pair recovers to 1.2990 ahead of the London open on Tuesday. The pair has been positive recently as investors expect Brexit deadlock to end soon as the UK members of the parliaments (MPs) return to their desks after nearly fortnight-long Easter recess.

However, speculations that a senior Tory member is likely to push the British PM towards a resignation before June is restricting the British Pound’s (GBP) upside off-late.

Due to the pressure on her job the UK PM May is ready to restart the cross-party Brexit talks with the opposition Labour party after it stalled before Easter break on personal differences.

News reports were also doing the rounds that some of the lawmakers are selling second Brexit referendum in search of luring votes ahead of the EU election.

Other than Brexit headlines, the US housing market numbers and manufacturing index might also entertain the Cable traders during the rest of the day.

The US new home sales (MoM) for March may slip to 0.650 million from 0.667 million whereas the monthly print of housing price index for February may soften to 0.3% from 0.6%. Also, the Richmond Fed manufacturing index could weaken from 10 prior.

GBP/USD Technical Analysis

Despite the recent bounce, 1.3000 and a seven-week-old descending trend-line at 1.3050 can challenge the Cable buyers ahead of making them confront 50-day SMA level of 1.3100.

Alternatively, 1.2970-60 area including 200-day and 100-day simple moving averages (SMAs) is likely important support for the pair, a break of which can recall 1.2930, 1.2910 and 1.2880 back on the chart.

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