GBP/USD remains below 12-day old resistance-line amid Brexit/political uncertainty

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  • Additional information on rebel MPs’ move to curb no-deal Brexit exert downside pressure on the GBP/USD.
  • The UK PM expects no Brexit action from the EU unless it sees clarity on the UK politics.
  • A recent survey from ComRes suggests PM Johnson has public’s support for his “do or die” Brexit pledge.

Despite the early-week recovery, GBP/USD seems to falter as it remains below near-term trend-line resistance while making the rounds to 1.2080 during early Tuesday.

Among the negatives could be the latest additional information on some of the rebel members of the Parliaments’ (MPs) attempt to block a no-deal Brexit. The Guardian spots a senior government source saying that the date for a parliamentary battle was expected to be 9 September – a week after MPs return from their summer break.

Further, the UK Prime Minister (PM) Boris Johnson expects nothing from the EU unless the bloc sees the result of domestic political plays against the Brexiteer. Though, survey results from ComRes indicate that the UK public is in support of PM Johnson when he pledges for October 31 Brexit date “do or die”.

Elsewhere, the US National Security Adviser John Bolton is on a Britain visit with the CNN quoting him supporting the PM Johnson’s Brexit outlook.

While expectations that the UK lawmakers may either postpone the Brexit or pave the way for a soft departure pleased the Cable buyers on Monday, the US Dollar (USD) weakness on the back of global risk-off moves added strength to the momentum. However, investors struggle to forgo the Brexit/political uncertainty at the UK, which in turn recently weigh on the pair.

Looking forward, British employment data for June and the US inflation numbers for July can entertain traders whereas trade/political news can keep offering the background music.

Technical Analysis

The 12-day old trend-line resistance at 1.2085 becomes the nearby key upside barrier holding the gate for the pair’s further recovery towards the monthly high near 1.2210. Meanwhile, 1.2015, 1.2000 and 2017 low near 1.1987 can keep the pair’s downside under check.

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