- The progress at Brexit talks plays positive for the Cable traders amid broad USD pullback.
- 1.2965/70 continues to act as near-term important upside resistance with fewer data to watch.
The British Pound (GBP) is on the bids around 1.2930 versus the US Dollar (USD) during early Tuesday. The GBP/USD pair has been taking advantage of the greenback weakness off-late while news reports favoring progress at the cross-party Brexit talks seems also to have played their part.
During initial hours of Tuesday, the Guardian came out with a news report that claims the Brexit talks between the Tories and the opposition Labour party are towards possible compromise.
On Monday, the Bank of England (BOE) Governor Mark Carney defended his pessimistic economic forecast in case of Brexit while giving fewer signals for future monetary policy actions as he spoke at the Innovate Finance Global Summit in London.
The US data dossier flashed mixed signs with soft Core PCE dominating over upbeat personal spending numbers.
Looking forward, no major data is scheduled for release from the UK except a speech by the BOE monetary policy committee (MPC) member David Ramsden at the same platform where Carney spoke yesterday.
However, the US pending home sales and Chicago purchasing managers’ index are likely to flash welcome data.
Other than economic calendar and speech, Brexit talks could keep grabbing the spotlight as the BBC reports that the UK will soon discuss citizens’ right with the EU in case of no-deal Brexit takes place.
Technical Analysis
Unless clearing 100-day and 200-day simple moving average (SMA) confluence near 1.2965/70, chances of witnessing 1.3000 on the chart seems less acceptable. Also, 1.30500 and 50-day SMA around 1.3110 could please buyers past-1.3000.
On the downside, 1.2900 and 1.2860 seem nearby rest-points to watch during the pair’s pullback whereas 1.2830 and 1.2770 might challenge sellers then after.
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