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  • The Sterling is lifting ahead of another UK parliamentary vote on PM May’s new Brexit strategy.
  • The UK’s economic calendar is empty for Monday, but US Retail Sales and Tuesday’s UK Average Earnings promise to bring some market volatility to the mix.

The GBP/USD is moving tentatively into 1.3250, though today’s Brexit vote in the UK parliament could see Prime Minister Theresa May facing further setbacks in her negotiations with the EU.

PM May’s recent Brexit strategy proposal will now face a vote in the UK’s parliament, and if a majority of May’s own party decide to make changes to the PM’s proposals, it could further weaken her negotiating strategy with EU leaders in Brussels, who have been stalwart in providing little or no leeway in negotiations thus far, and PM May has had a tough time wrangling support from hard-line Brexiteers within her own party.

The economic calendar is decidedly thin for Monday, and Sterling traders will be looking ahead to Tuesday’s Average Earnings figures, though Monday’s upcoming US session could throw markets as US Retail Sales are expected to come in soft, with June’s m/m Retail Sales (excluding autos) forecast to decline from 0.9% to 0.4%.

GBP/USD Technical Analysis

Light trading through the Asia session saw the GBP catch some minor lift into the 1.3250 level, and Monday’s London session will see the next stage of PM May’s latest Brexit proposal as the British parliament, and May’s own party, will vote on whether or not to make changes to the PM’s strategy. Broader markets turned bullish late last week, and the bullish trend for the Sterling has carried over into the new week as traders await fresh news.

GBP/USD Chart, 15-Minute

Spot rate:   1.3247
Relative change:   0.13%
High:   1.3250
Low:   1.3221
Trend:   Bullish
Support 1:   1.3221 (current day low)
Support 2:   1.3101 (previous week low)
Support 3:   1.3049 (2018 low)
Resistance 1:   1.3262 (61.8% Fibo retracement level)
Resistance 2:   1.3361 (previous week high)
Resistance 3:   1.3446 (June 14th swing high)