GBP/USD: Break of 1.2970/60 favors sellers amid Brexit uncertainty despite recent pullback
- Brexit pessimism contrasts the US positive clues while recalling nine-week low.
- Qualitative catalysts to keep dominating price sentiment amid lack of economic data.
Recent pullback of the GBP/USD pair to 1.2930 can’t speak in favor of the bulls as the Cable continues to remain under 1.2970/60 confluence comprising 100-day and 200-day SMA during early Wednesday.
British lawmakers’ comeback to the UK parliament after Easter recess dragged the pair down to the lowest levels in nine weeks. Traders initially concentrated on the news reports signaling another challenge to the UK PM Theresa May’s position and the start of cross-party Brexit talks.
Though, clues that the cross-party talks can witness another limbo fuelled pessimism among the GBP/USD traders.
On the contrary, upbeat new home sales and rising equities turned global investors to the US Dollar (USD).
Neither the UK nor the US has any important data scheduled for release on Wednesday. However, qualitative catalysts like Brexit, earnings report, political plays, etc. can keep offering fresh impulse to traders.
GBP/USD Technical Analysis
Having breached 100-day and 200-day simple moving averages (SMAs), the quote is more likely to visit 1.2900 and 1.2880 rest-points with 1.2830 and 1.2800 expected to limit further declines.
On the contrary, an upside clearance of 1.2970 can confront 1.3000 and 1.3030 resistances ahead of questioning six-week long descending trend-line at 1.3050.