- Cross-party talks remain dismal to PM May’s expectations.
- Failure to deliver Brexit deal increases chances of the UK PM to lose her grip over the PM’s position.
Having witnessed no solution from the cross-party Brexit talks, the GBP/USD pair is taking the rounds near 1.3070 during early Asian morning on Wednesday.
Despite growing efforts by the UK Prime Minister Theresa May to please the opposition Labour party with incentives like EU customs deal, the cross-party negotiations couldn’t offer a Brexit proposal during their Tuesday’s gathering.
The UK PM May has been trying to avoid the current month’s EU elections by submitting a Brexit plan to the regional lawmakers but has failed so far.
The British lawmakers are likely to meet again during the coming days to have a Brexit proposal that Mrs. May can put forward for voting in the UK parliament.
Given the absence of data from the US and the UK, chances of having more reaction to the Brexit news can’t be denied.
Additionally, the US-China trade tensions and efforts to oust PM May at the UK are some other catalysts that the pair traders may follow.
Technical Analysis
Pair’s slip beneath 50-day simple moving average (SMA) highlights 100-day SMA level of 1.3000 as immediate support ahead of pushing sellers towards 1.2960 mark comprising 200-day SMA, followed by 1.2930 and April bottoms near 1.2865.
On the upside clearance of 1.3100 figure including 50-day SMA, buyers can aim for latest high around 1.3180 whereas 1.3200 and 1.3270 could appear on their list afterward.
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