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  • Doubts over Brexit keep GBP/USD under pressure off-late.
  • EU is less likely to agree on extension date soon, France opposes three-month delay.
  • UK PM calls for a snap election but wants the Parliament to accept his deal.

With the UK PM calling a snap election while the lawmakers await the EU’s response to Brexit extension, GBP/USD registered heavy declines during late-Thursday. The losses seem to have takes a halt amid the initial Asian session on Friday when the quote flashes 1.2820 amid rising doubts over the Tory leader’s strategy.

The United Kingdom’s (UK) Prime Minister (PM) Boris Johnson finally confirmed speculations of the third snap election during nearly four years’ time in Britain. The Tory leader called for an early election on December 12 but wants the Parliament to agree over his hard-fought Brexit deal.

On the other hand, market sources revealed that the European Union is less likely to offer any exact Brexit date on Friday and might stretch the discussion to Monday. It’s worth pointing out that the PM Johnson’s motion for election will be tabled for a vote on Monday and requires a two-thirds majority to witness the change.

While the majority of the UK lawmakers, including opposition, favor early elections, they want assurance over a no-deal Brexit while the PM sticks to his demand of agreeing over the present deal before the Parliament dissolves on November 06. In this regard, the Australia and New Zealand group recently said, “It is theoretically possible but probably unlikely that Parliament could rush through Johnson’s deal before dissolution on 6 November if the motion passes. Three and a half years and counting”¦”

Elsewhere, the US Dollar (USD) strength and uncertainty surrounding the US-China trade deal grab market attention.

In addition to keeping an eye over the headlines, the United States’ (US) Michigan Consumer Sentiment Index for October, expected to remain unchanged at 96, will also be watched for intermediate trade opportunities.

Technical Analysis

Prices are gradually coming down to multiple highs marked around 1.2750 during June while 200-day Simple Moving Average (SMA) level of 1.2715 holds the key to pair’s plunge towards September high of 1.2582. Meanwhile, 1.3000 keep being the tough nut to crack for buyers.