- Easter holidays confine market reaction to negative news from the UK.
- 200-day SMA seems important to support in contrasts to near-term trend-line resistance at 1.3070.
The GBP/USD pair is slightly weak while trading near 1.2990 during early Monday. Despite breaking ascending trend-line support stretched since mid-February, 200-day SMA and Easter holidays limit the quote’s further downside.
The Sunday Times report that the chairman of the back-bench 1922 committee, Sir Graham Brady, is ready to tell the British Prime Minister Theresa May that she has to step down from her position played a slightly negative tune for the Cable.
However, Friday’s sluggish housing market numbers from the US and absence of the UK lawmakers from the parliament till April 23 limits the market moves. Additionally, Easter Monday holiday in the UK and the US is also playing its role in restricting the pair’s performance.
Despite holidays, the US March month Chicago Fed National activity index and existing home sales are up for release at 12:30 and 14:00 GMT respectively. The activity index shrank -0.29 during its previous release whereas existing home sales (MoM) may post 5.30 million figure versus 5.51 million prior.
GBP/USD Technical Analysis
While 200-day simple moving average (SMA) level of 1.2970 and 100-day SMA near 1.2955 can question sellers, a break of which can recall 1.2930, 1.2910 and 1.2880 supports on the chart.
On the contrary, 1.3050 and a six-week long descending trend-line at 1.3070 may continue restricting the pair’s near-term upside targeting 50-day SMA level of 1.3100.
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