GBP/USD Price Forecast – GBP/USD Trades Near Monthly Lows As Brexit Headlines Continue To Pressure British Pound

GBP/USD continues to trade with softer tones in the Asian market window as investor sentiment remains anxious ahead of today’s London market hours as PM May continues to reject calls for vote delay. With parliament mid-way through a five-day debate on the Brexit deal before the vote on Tuesday which will define Britain’s departure from the EU and could determine May’s future as leader, she looks set to lose the vote. The Brexit wheels continue to grind on as the clock runs down towards next Tuesday’s critical Brexit vote in the UK’s House of Commons resulting in high level of bearish pressure on British Pound. As of writing this article, GBP/USD pair is trading at 1.2765 down by 0.15% on the day.

Investors Focus on NFP Data For Clues On Fed Rate Hike Possibilities

On release front, the economic calendar is free and clear of meaningful data for the UK, leaving investors to continue focusing on steady stream of Brexit headlines that will be flowing today and over the weekend. Meanwhile the other side of Atlantic sees the big reading on the list is the US’ next round of Non-Farm Payrolls, due to drop on markets once again at 13:30 GMT. Economic data for the US has been mixed as of late, and extra emphasis will be placed on the jobs figure to end the week as traders look for signs of shifts in the underlying economy that could spark a move from the US Federal Reserve, who signaled recently that their path forward on interest rate hikes will be driven more firmly by economic data looking forward.

When looking from technical perspective, recent intraday bullish moves for the Cable are facing stiff resistance from a well-beaten bearish trend. The GBP/USD pair trades above the daily ascendant trend line coming from November monthly high, but still below its weekly high of 1.2839, with a modestly positive tone in the 4 hours chart, as it has also advanced above its 20 SMA.  The Momentum continues hovering around its mid-line, while the RSI stabilized around 57 indicating that buying interest is not strong enough at the time being. Beyond the mentioned weekly high, the next strong static resistance comes at 1.2880. Expected support and resistance for the pair are at 1.2730, 1.2695, 1.2660 and 1.2805,1.2840, 1.2880 respectively.