GBP/USD Price Forecast – Pound Sinks After UK Brexit Minister Resigns

Macro Data Unlikely to Have Any Impact Today as Analysts Await Brexit Draft to Pass through UK’s Parliament

A highly fluctuating headline surrounding Brexit proceedings kept the Pound in the lurch, and rumors are beginning to spread of a potential play by hard-line Brexiteers to call a no-confidence vote in PM May this week and derail Brexit negotiations once and for all. As of writing this article, the pair dropped and is trading close to October low.

Meanwhile, US calendar will see the release of Retail sales data, Philadelphia Fed Manufacturing Index data, Crude Oil Inventories data and a speech by US Fed Chair Jerome Powell. Retail sales data has a hawkish forecast and hawkish outcome could see US greenback’s value gain in the broad market but the pair’s momentum is highly likely to remain influenced by Brexit headlines rather than US Greenback which dictates price action in other major global pairs. For now, technical readings are overshadowed as the pair continues to move on Brexit based momentum with no clear directional cues. For any clear idea on a directional bias of the pair, we need to see a breakout above 1.3046 or below 1.2826 respectively. Expected support and resistance for the pair are at 1.3000, 1.2955, 1.2900 and 1.3045, 1.3070, 1.3095 respectively.