- With Brexit in limbo, GBP/USD is lacking a clear directional bias.
- Britain would need fresh elections if the EU grants a three-month extension, as requested.
GBP/USD has spent a better part of the last 10 hours trading in a sideways manner around 1.29 and could remain directionless in Europe with Brexit in limbo.
Having failed to persuade Parliament to approve the Brexit deal as law, UK’s Prime Minister is now waiting for the European Union (EU) to decide whether to agree to his three-month delay request.
European Council President Donald Tusk said on Twitter he was recommending that the leaders of the EU’s 27 other member states back a delay, according to Reuters.
Further, Johnson’s spokesman has said that an election would be needed if the EU grants a three-month delay, as requested.
The EU, however, is unlikely to make a decision before Friday. Traders, therefore, are likely to remain on the sidelines, leaving the GBP pairs directionless in Europe.
That said, the pair may challenge recent highs near 1.30 in the North American session if the US Durable Goods data, scheduled at 12:30 GMT, prints below estimates, strengthening the dovish Federal Reserve expectations.
The US central bank is expected to deliver a third 25 basis point rate of 2019 at its Oct. 30 meeting.
Technical levels
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