GBP/USD Daily Forecast – The Cable’s Plunging Rally Got Paused Near 1.2744Brexit fails to provide the fundamental support to the Sterling Pound pair. May might lose again. Meanwhile, the pair moves into the upper vicinity of the Bollinger Bands, showing uptrend signs.
The Cable remained quite amid the lowest levels recorded since the start of the month. Earlier today, the pair seemed to lack direction and remained in consolidation mode near 1.2749 levels. The GBP/USD pair had lost the grip of its comfortable psychological mark around 1.3000 levels on May 13.
The tumble rally continues to survive over the weeks on the backdrop of Brexit sluggishness and active growing US Dollar Index.
May’s Win Seems Doubtful Even This Time
On Friday, the Cross-party talks failed to get through any settlements over the Brexit-Deal. Theresa May earlier had failed thrice, to get a majority over the Withdrawal bill in the Parliament. Now, the PM has re-proposed a new and improved deal for voting in the first week of June. Mrs. May even confirmed her resignation after the lawmakers pass this Brexit Deal. Recently, a piece of news suggested that the new PM might proceed with the earlier deal. Hence, the new Leader who will replace her may not state any improvements in the Withdrawal bill.
Moreover, the Labor Party stood with the opinion of giving their support only when the PM makes a new deal. The Opposition wants the modified version to include their demands for Customs Union.
As there appears a blurred picture of Theresa May’s proposed deal, it looks somewhat doubtful getting majority votes on Brexit this time.
If the bill fails to pass through the House, then the UK will have to go without any deal on October 31. Such an action would culminate into furthermore significant setbacks over the British Pound pair in its future movements.
During the Asian trading session, the Greenback was trading near 97.97 levels, 0.06% down from day’s high. The slight fall was on the back of the aroused EUR/USD pair. The German April PPI figures reported 0.5% over 0.2% estimates. Anyways, the USD Index still holds good strength hovering near 98.00 top levels. The Greenback continued growth despite pessimistic headlines around US-Sino trade talks that appeared during the weekend.
GBP/USD Influencing Events
The BOE‘s Ben Broadbent will give his opinions about the investment, and the duration of uncertainty in the UK The GBP/USD pair might get impacted following the Deputy Governor’s address today. Whereas, on the US economic events side, the Fed’s Powel speech is the significant one. At 12:30 GMT, the Chicago Fed National Activity Index will come out. The market analysts expect this index to appear near negative 0.3% this time. Afterward, the Vice-Chair of the Federal Reserve will put some light on the country’s economic and financial situations.
The Cable had remained entirely intact within the lower region of the Bollinger Bands (BB) since last week. Hence, the pair showcased strong downward movements in the previous few days. However, the pair seems to have reached some pivotal reverse point. From this point, the pair may upshoot as it has crossed BB’s center line and moved into its upper vicinity.
Meanwhile, the SMA hovered well above the GBP/USD pair reinstating downtrend. The 50-days SMA was heading south hoping for an intersection with the pair. If the SMA coincides and moves lower to the pair, then a near-term uptrend may take rebirth. The Relative Strength Index (RSI) was slightly above the decent 50 level mark, showing mediocre investor interest.