GBP/USD: Buyers and sellers jostle ahead of busy UK docket

• GBP/USD retraces ahead of the key UK data/events scheduled for publishing.
• UK MPs will vote for snap elections, the law forbidding no-deal Brexit will also be signed by the Queen.
• UK GDP, Manufacturing Production will decorate the economic calendar.

Be it the Parliament’s voting on re-election or formal confirmation of a soft Brexit, needless to mention about monthly GDP, UK docket has it all to entertain the GBP/USD pair that takes the rounds to 1.2280 ahead of Monday’s London open.

Having received approval from the House of Lords, the bill to stop no-deal Brexit for three-months to October will reach to the Queen for being the law. However, the Prime Minister (PM) Boris Johnson has threatened to re-call a vote in the House of Commons concerning a snap election and hence kept the political drama alive.

The United Kingdom’s (UK) PM Johnson will travel to Dublin on Monday in order to convince the Taoiseach  Leo Varadkar  about Irish backstop. Latest talks between the UK and Irish policymakers have been positive after the PM suggested single regulatory regime north and south of the border for food and agriculture. Though, it still needs to be discussed further for an actual outcome.

Elsewhere, The Guardian recently said that France will use its veto to block another Brexit extension while the news was also taking rounds that the British policymakers are planning to call an emergency debate to challenge the PM Johnson’s anticipated efforts to block the Brexit extension.

At the economic calendar, July month data for Manufacturing Production, Industrial Production and Gross Domestic Product (GDP) will be closely watched. While Manufacturing Production is likely to have recovered from -1.4% prior to -1.0% YoY, Industrial Production may have registered further declines to -1.1% from -0.6%. Further, monthly GDP data is expected to rise to 0.1% from 0.0% MoM. Additionally, Bank of England’s (BOE) policymaker Dr Gertjan Vlieghe will also cross the wires and may add volume if releasing any crucial information, which is less likely to.

On the other hand, the US-China trade story keeps holding the top spot for the US Dollar (USD) traders amid a lack of major data/events up for publishing. However, July month Consumer Credit Change, expected $16.0B against $14.6B could mark its presence.

Technical Analysis

50-day exponential moving average (EMA) level of 1.2310 and a rising trend-line since July 31, at 1.2340 now, become near-term key resistances whereas 21-day EMA level of 1.2217, close to August 06 high of 1.2210, acts as adjacent support-zone for the pair traders to watch during the pullback.