GBP/USD Daily Price Forecast – The Cable Relaxes Near 1.3000 Amid Brexit Chaos

The Cable remained consolidated near 1.3010 levels for quite some time during the opening hours. The GBP/USD pair showed a small jump followed by a 16 pips fall. If the downtrend continued, the pair might bounce back from the support lines near 1.2991 levels.

Brexit Updates

During the last week, UK PM Theresa May attempted for cross-party talks for negotiating over Brexit. The PM, failed to get negotiations, as the Labours sharply demanded the Customs Union with EU. Following the failure, the talks got postponed to this week.

In today’s interaction between the Government and the Labour party, there seemed a heavy demand for the “Second Referendum.” Meanwhile, few MPs from the Opposition Party hold their stand to get a second referendum to Brexit deal. The results of the meeting may get released in the next session which may invite further disruptions on the pair.

If the Brexit deadlock continues, then there are higher possibilities that the UK will have to attend the EU elections on May 23. Recently, a piece of news flashed about, May’s husband Philip to persuade her to resign. PM’s spouse said that if Theresa May fails to get a majority on Brexit in a month, then she would leave. This news calls for the PM’s exit plan from the UK Parliament and a time-bound action from her within five weeks.

On the other side of the equation, the USD Index was hardly four pips up in the Asian trading session. However, that was a part of the recovery of losses out of Friday’s plunge rally. The Index was hovering near 97.34 levels at 08:11 GMT.

The GBP/USD Influencing Events

The currency pair might not show good volatility as there are hardly any GBP events to move the pair. The market relies heavily upon the upcoming US Fed’s Eric Rosengren speech. The Official will comment about the American economy. Also, Richard H. Clarida, the Vice Chair of the Board of Governors of the Fed would address the Monetary Policy.

Technical Analysis

The significant 100-days SMA and the 200-days SMA appeared above the GBP/USD pair. And, it alluded that in the long term there is a bull call over the pair. The 50-days Simple Moving Average (SMA) intersected the pair. Hence it referred that, in the near term, the pair has neutral trading effects.

The Relative Strength Index (RSI) hovered near 44 levels, and the line was tilting downwards. A moderate buying activity gets revealed from the RSI levels. The GBP/USD pair remained in the lower vicinity of the Bollinger Bands (BB) and stated a bearish outlook. On the upper side, there are two resistance lines near 1.3036 and 1.3052 levels. While on the downside, support lines appear near 1.2991 levels.