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  • Sterling seeing soft action in early Monday trading after last week’s hefty Brexit drama.
  • The week’s action won’t officially begin in earnest until   Tuesday’s Average Earnings figures.

The GBP/USD is trading softly near 1.3250 ahead of a thinned-out schedule for Monday.

The Sterling sees a notable lack of impactful economic data for Monday, but ongoing Brexit concerns, as well as the US President’s recent trip to the UK, will be giving traders plenty to digest as they head into the new week.

Last week saw Brexit woes come to a head when several key Brexiteers within the UK’s parliament resigned from their posts within the government’s Brexit ministry in protest over Prime Minister Theresa May’s latest ‘third option’ Brexit proposal, a Hail Mary attempt to meet both hard-line leavers within the UK and EU leaders in Brussels in the middle. Neither side looks set to be particularly happy with the proposals, and the future of Brexit continues to look like a murky mess, and UK businesses are increasingly concerned that economic uncertainty will begin to hamper their growth.

The release of the Brexit White Paper late last week also saw a fresh round of resignations from starry-eyed Brexiteers, and Prime Minister Theresa May is beginning to flash warnings of there simply not being a Brexit if hard-liners don’t begin to play ball.

US President Trump visited the UK over the weekend, and was greeted by a series of protests and demonstrations, while PM May noted to the BBC that Trump’s advice on Brexit may not be a desirable route for her to take.

Sterling traders will be looking forwards to Tuesday, when Average Earnings figures will be dropping at 08:30 GMT, and bulls will be looking for some good news after being hammered by Brexit woes. Earnings with bonuses are expected to hold steady at 2.5% over the previous quarter, while baseline earnings without bonuses are anticipated at 2.7%, a slight decline from the previous quarter’s 2.8%.

GBP/USD Levels to watch

As noted by FXStreet’s own Valeria Bednarik, “technically, however, the upward potential remains limited according to technical readings in the daily chart, as the pair hovers around a flat 20 SMA while technical indicators are stuck to their midlines, now aiming higher but with no actual strength. Shorter term, and according to the 4 hours chart, technical indicators lost upward strength around their midlines after correcting oversold conditions, while the price settled a few pips above a mild bearish 20 SMA, also indicating limited buying interest.”

Support levels: 1.3180 1.3155 1.3110

Resistance levels: 1.3240 1.3285 1.3320