- Trade talks gain more importance amid fewer catalysts from the UK.
- Today’s economic calendar may entertain the Cable traders.
Despite being on the bids at 1.3015, the GBP/USD pair remains mostly unchanged surrounding 100-day SMA on early Friday. With the lack of major data/events from the UK joining the on-going trade negotiations between the US and China, traders have late been showing little reaction to the headlines concerning politics and Brexit from the UK.
On Thursday, the British Pound (GBP) gained versus the US Dollar (USD) as the UK PM May got a near-term relief from her struggle to avoid being ousted and also due to the greenback’s soft play.
Bloomberg news that the Tories have stepped back from altering rules to challenge the UK Prime Minister Theresa May’s position gave an immediate smile to the Cable buyers on yesterday.
Adding to the recovery could be the market’s risk aversion ahead of today’s crucial trade talks between the US and China in Washington.
Neither the US nor the Chinese lawmakers announced any decision since morning despite completing initial discussions as they stretched the negotiations to a few hours later.
While the US President Donald Trump sound positive to the outcome in his recent comments, he still warned to levy tariffs on $325 billion and renewed the tension. At China, policymakers have been tight-lipped but confirmed to retaliate to the US tariff hikes, if any.
Elsewhere, the UK GDP, manufacturing production and the US CPI will be on the spotlight in case of the economic calendar.
Technical Analysis
A week-long descending trend-line at 1.3055 acts as immediate resistance while 50-day simple moving average (SMA) level of 1.3090 and early-month highs near 1.3180 likely to entertain bulls during the further rise.
Meanwhile, pair’s slip beneath 100-day SMA level of 1.3000 can be validated on the break of a fortnight old support-line at 1.2980 and 1.2960 mark including 200-day SMA. In doing so, prices can drop to 1.2920 and April lows near 1.2865/60.
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