Search ForexCrunch
  • Sterling continues to see drag on its tail ahead of Tuesday’s earnings reporting.
  • PM May’s latest Brexit proposal has seen some key changes by Brexiteers that muddy the exit waters.

The GBP/USD is still trading into 1.3250 after failing to make headway into the key 1.33 major figure on Monday.

Brexit continues to spin out into a political mess, and the back-and-forth between leavers and the stayers is still dragging on the GBP. Amendments were passed on Prime Minister Theresa May’s latest Brexit proposals, and the changes made by majority vote by pro-Brexit ministers in the House of Commons are likely to make it significantly harder for PM May to reach a passable negotiated Brexit with EU leaders in Brussels.

Tuesday sees the latest earnings figures for the UK economy, dropping at 08:30 GMT. Average Earnings including bonuses is expected to grow by 2.5% for the first quarter of 2018, while Average Earnings without bonuses is expected to lift by 2.7%. At the same time, Unemployment readings are expected to remain steady at 4.2%. Just ahead of the Average Earnings reading will be a speech from the Bank of England’s (BoE) Governor Mark Carney at 08:00 GMT, and Carney continues to keep reigns tight on a central bank that is moving closer to an interest rate hike, though trade risks continue to weigh on central banks’ strategy outlook across the globe.

GBP/USD Levels to watch

As noted by FXStreet’s own Valeria Bednarik, “the 4 hours chart for the par shows that the pair eased after testing the 200 EMA and pulled down toward a mild bearish 20 SMA. Indicators in the mentioned chart lost their upward strength, now heading south within neutral levels. The bearish potential will likely increase on a break below 1.3180, while chances for bulls will be higher on a break above the 1.3300 figure.”

Support levels: 1.3180 1.3155 1.3110

Resistance levels: 1.3250 1.3295 1.3340