Brexit headlines help the GBP stay strong on Tuesday. US Dollar Index struggles to find direction, stays flat on the day. PMI data from the U.S. paints a mixed picture. After closing the previous day below the 1.31 mark, the GBP/USD pair retraced the majority of Monday’s losses as the latest Brexit headlines helped the GBP gather strength against its rivals. As of writing, the pair was trading at 1.3140, up 0.3% on the day. In a written statement to the Parliament, British Prime Minister Theresa May said that she was going to lead the negotiations with the European Union and heightened expectations of the UK reaching a desired deal with the EU. “DExEU (Department for Exiting the EU) will continue to lead on all of the government’s preparations for Brexit: domestic preparations in both a deal and a no deal scenario, all of the necessary legislation, and preparations for the negotiations to implement the detail of the Future Framework,” the statement further read. On the other hand, the advanced PMI reading released by Markit showed that the activity in the manufacturing sector in the U.S. expanded at a faster than expected rate in July. However, further details of the report revealed that the Services PMI and Composite PMI figures both fell short of the market expectations. The initial market reaction to the mixed data dragged the US Dollar Index to a fresh daily low of 94.40. In the second half of the NA session, the DXY shook off the negative impact of the data and erased its daily losses to turn flat near 94.65, making it difficult for the GBP/USD pair to continue to push higher. Technical outlook Despite today’s recovery, the RSI indicator for the pair rose toward the 50 mark, suggesting a near-term neutral outlook for the pair. On the upside, resistances align at 1.3180 (20-DMA), 1.3245 (50-DMA) and 1.3300 (psychological level/Jul. 10 high). Supports, on the other hand, are located at 1.3070 (daily low), 1.3000 (psychological level), and 1.2955 (Jul. 19 low). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Euro Macro: soft patch continues – ABN AMRO FX Street 5 years Brexit headlines help the GBP stay strong on Tuesday. US Dollar Index struggles to find direction, stays flat on the day. PMI data from the U.S. paints a mixed picture. After closing the previous day below the 1.31 mark, the GBP/USD pair retraced the majority of Monday's losses as the latest Brexit headlines helped the GBP gather strength against its rivals. As of writing, the pair was trading at 1.3140, up 0.3% on the day. In a written statement to the Parliament, British Prime Minister Theresa May said that she was going to lead the negotiations with the European… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
