- Brexit news keeps Pound traders on edge as PM May is yet to gain support for her proposal to avail deadline EU extension till May 22.
- The 100-pip range between 1.3240 – 1.3140 could challange the Cable moves.
The British Pound (GBP) is little changed near 1.3200 versus the US Dollar (USD) in the initial trading hours of Wednesday’s Asian session. The GBP/USD pair, also known as the Cable, increased yesterday on speculations that the UK PM Theresa May will be able to garner support for her third Brexit proposal whereas soft data from the US further pleased the pair buyers. While Brexit could keep entertaining traders, the US trade balance and the UK CBI realized sales will add momentum into the sentiment.
On Tuesday, reports that the Eurosceptic Tory member of parliament (MP), Jacob Rees-Mogg conveyed his support to the PM May’s Brexit plan over twitter reduced some uncertainty off the Pound after MPs preferred taking Brexit control off the government during early-day voting via Letwin Amendment. Speculations were also rising that there will be a year’s delay in the Brexit from March 29.
Adding to the pair’s upside was weaker than expected housing and consumer confidence details from the US.
Cable traders may now focus on whether and how PM May puts her Brexit proposal in the British parliament for votes during Wednesday amid growing opposition to accept it. Developments surrounding challenges to her PM post may also be closely observed.
At the economic front, results of the UK CBI distributive realized trade survey will become first to arrive. The survey is likely to please Cable buyers with 5% mark against 0% prior. However, expected reduction in the US trade balance for January month to $-57.0 billion from $-59.8 could question the optimists.
GBP/USD Technical Analysis
GBP/USD needs to portray successful trading beyond 1.3240 in order to aim for 1.3310 and 1.3380 otherwise its pullback to 1.3140 and then to 50-day simple moving average (SMA) figure of 1.3080 can’t be denied.
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