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  • GBP/USD stops further declines with little reaction to Brexit news during early Asia.
  • The UK PM Johnson to soon reveal final Brexit plan and might ignore Benn Bill. Though, Senior Judges prepare to face the action.
  • Manufacturing activity numbers to decorate economic calendar while trade/political headlines to offer busy sessions ahead.

Given the recently flashed mixed Brexit signals from global media, GBP/USD rakes the rounds to 1.2290 during Tuesday morning in Asia.

While the UK Telegraph came first to broke the news that the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson won’t take more than 24 hours to reveal his Brexit secret to the European leaders, it also shared the headlines that the senior judges at the British Supreme Court are expected to hear any judicial review against Boris Johnson if he fails to abide by the Benn act. By providing extra details, the UK Times reported that PM Johnson is prepared to ask the EU not to extend Article 50 deadline, which is October 31 by now.

Elsewhere, the Hugginton Post says that the weekly meeting of the Parliamentary Labour Party (PLP) saw backbenchers urge the Labour leader to either back a ‘confirmatory’ referendum on any Boris Johnson deal – or to instigate one during a temporary caretaker government.

It should also be noted that the UK Finance Minister Sajid Javid earlier signalled that he hopes the UK could live the EU with a deal by October 31. Though, the diplomat didn’t rule-out calls to leave without a deal.

While Brexit headlines will keep the GBP/USD pair traders entertained, month-start manufacturing activity numbers from the UK and the United States (US) will be the key to watch. The UK Manufacturing Purchasing Managers’ Index (PMI) is expected to weaken to 47.0 versus 47.4 while the US ISM Manufacturing PMI could increase to 50.0 from 49.1 in September.

Technical Analysis

Unless breaking 50-day simple moving average (SMA) level of 1.2260, the pair is less likely to revisit the 1.2200 mark, nearing early-August tops. Alternatively, 21-day SMA at 1.2366 holds the gate of recovery to 1.2400 and 100-day SMA level of 1.2445.