GBP/USD: Firm around five-month high despite recently challenging Brexit headlines

• GBP/USD clings to 1.2970 in a search for fresh clues.
• The Sun’s report of further hardships for the UK PM seems to have been ignored.
• The UK Parliament proceedings will be closely observed for the second reading of the WA bill.

GBP/USD bulls ignore recently Brexit-negative headlines from The Sun as the Cable clings to the multi-month top while taking the bids to 1.2973 during early Tuesday.

The Cable buyers have previously ignored the United Kingdom’s (UK) House Speaker John Bercow’s rejection of holding Meaningful Votes on the Prime Minister (PM) Boris Johnson’s Brexit deal.

Recently, The Sun came out with news citing a rainbow of the Members of the Parliaments (MPs) standing ready to challenge the UK PM’s plan whenever it will be up for voting during the week. The second reading of the plan will be discussed during Tuesday wherein the news suggests the opponents add conditions like the UK will remain in the European Union’s (EU) customs union and/or second referendum on the deal before it reaches the bloc for a sign.

The reason for the underlying strength could be fewer odds supporting the UK’s existence in the EU’s customs union and a few others for the second referendum. Also, leaders at the EU have already favored the UK PM Johnson and hence some at the London shifted their seats to better adjust the flow.

The economic calendar has nothing major from either the UK or the United States (US), except for the September month Public Sector Net Borrowing and October month CBI Industrial Trends Survey Orders from the UK and the US September month Existing Home Sales and October reading for Richmond Fed Manufacturing Index.

With this, investors will keep a close tab on the UK’s Parliamentary proceedings while also taking note of the US-China trade headlines for fresh impulse.

Technical Analysis

FXStreet Analyst Flavio Tosti spots the pair’s trading above key Simple Moving Averages (SMA) portraying the momentum strength:

“The Cable is trading in a bull channel above its main SMAs. A break above 1.3025 resistance can drive the market towards 1.3085 and 1.3140 resistances, support is seen at 1.2950/33 zone and the 1.2906 price level according to the  Technical Confluences Indicator.”