GBP/USD drops to re-test 50-day SMA as Risk aversion/Brexit doubts rule on the UK holiday
5/6/2019 4:45:01 AM
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With the fresh challenges to the British PM May’s Brexit deal, the GBP/USD pair drops towards 50-day SMA during early Monday when the UK markets are off.

  • PM May’s struggle to get her Brexit deal through the parliament has many challenges.
  • 50-day SMA acts as immediate support with 1.3200 being nearby resistance to watch on the UK holiday.
  • PM May’s struggle to get her Brexit deal through the parliament has many challenges.
  • PM May’s struggle to get her Brexit deal through the parliament has many challenges.
  • 50-day SMA acts as immediate support with 1.3200 being nearby resistance to watch on the UK holiday.
  • 50-day SMA acts as immediate support with 1.3200 being nearby resistance to watch on the UK holiday.

    With the fresh challenges to the British PM May’s Brexit deal, the GBP/USD pair failed to carry previous strength forward and declines to 1.3125 during early Monday.

    GBP/USD

    In spite of the UK markets being closed for May Day, news reports conveying the hardships PM Theresa May expected to face despite her efforts to please opposition Labour party were on wires off-late.

    The Times reported that the UK Prime Minister is ready to provide a plan for a comprehensive but temporary customs arrangement with the EU lasting until the next general election.

    On the other hand, The Guardian came out with a news report that signals the opposition leader Jeremy Corbyn’s likely failure to get enough support from his own party even if Labours chose to support PM May’s plan in the parliament.

    The Telegraph also conveyed that PM May held secret talks to garner support for her Brexit deal in order to present it soon enough to avoid the UK from taking part in the EU elections.

    While there seems little on the economic calendar, latest risk-odd moves backed by tensions between the US and China could become an important driver.

    economic calendar

    Technical Analysis

    Technical AnalysisAnalysis

    Pair’s break of 50-day SMA level, near 1.3110, might not refrain from dragging it to 1.3080 and 1.3030 ahead of highlighting 1.3000 round-figure and 100-day SMA near 1.2990.

    Meanwhile, late-March and early-April tops surrounding 1.3200 seem nearby important resistance to break in order to aim for January month highs near 1.3220 and the 1.3280 numbers to the north.