GBP/USD holds above 21-day EMA as markets shrug-off no-deal Brexit fears amid trade war

• GBP/USD stays on the bids as investors show little reaction to the Brexit headlines amid US-China trade war.
• The US and Chinese diplomats have recently begun calming trade-war fears.
• The UK PM Johnson negates divorce payment to the EU in a case of the no-deal Brexit, also holds the regional leaders responsible for the same.

With the risk aversion gaining major market attention, GBP/USD remains above near-term key support (previous resistance), while taking rounds to 1.2272 ahead of Monday’s London open.

Having announced increased levies on each others’ goods and also (indirectly) denigrating the opponents’ policies, the US and Chinese diplomats are up for settling the things as the Wall Street Journal quotes the US President Donald Trump’s aids turning down Mr. President’s tweet signaling the order to the US companies to leave China.

Elsewhere, China’s Vice Premier also stepped forward and stood ready to have a calm discussion, renewing hopes of fruitful trade discussions in early September.

On the other hand, the UK Prime Minister Boris Johnson is actively seeking advice to prorogue the Parliament, which stands ready to vote on the no-confidence vote and also avoid no-deal Brexit, in September.

Additionally, the PM Johnson’s clear refrain to pay £39 billion divorce payment to the EU in a case of the no-deal Brexit also increases the chances of such an event as the regional leader have repeatedly emphasized on it.

While trade/Brexit headlines will keep entertaining markets, the US Durable Goods Orders and the Chicago Fed National Activity Index for July can offer intermediate moves to the traders.

Technical Analysis

Although 1.2300 offers immediate resistance, July 17 low of 1.2382 becomes near-term key upside barrier, failure to break the same can keep sellers diverted towards August 06 high near 1.2210 and then to last week’s low near 1.2060.