GBP/USD keeps the red despite Brexit negotiators ready “to step-up tempo”

GBP/USD continues to decline as British politics rage.
The UK PM Johnson shows readiness to hold biweekly talks with the EU.
Cross-party MPs to hold meetings on Friday, Saturday and Sunday for the next week’s parliament open.

Anil Panchal FXStreet

The GBP/USD pair traders shrug-off the UK PM’s readiness to hold biweekly Brexit talks with the EU amid broad political uncertainty at home as the quote is on its way of third consecutive daily declines to 1.2175 ahead of the London open on Friday.

Even if the United Kingdom (UK) Prime Minister (PM) Boris Johnson’s Chief Brexit negotiator failed to push the Brexit matter while returning from the EU, the Tory leader promises twice a week meeting between European Union (EU) and the UK policymakers “to step-up tempo” of Brexit negotiations. Irish backstop has been the key blocks for any progress in the Brexit talks between the two sides off-late.

Though, the Cable traders mostly ignored the news and carry previous pessimism forward more than 150 cross-party Members of the Parliaments (MPs) prepare to hold multiple meetings before the UK Houses resume working from next week. While the majority of them are in support to block the PM Johnson’s use of prorogation, the opposition Labour party leader Jeremy Corbyn is prepared to put forward a no-confidence vote in the present PM even after turning it down before few days.

It should also be noted that prices are taking benefits of the United States (US)-China trade optimism after the dragon nation stepped back from furthering the tension with the US ahead of September talks.

Moving on, UK’s Mortgage Approvals, Consumer Credit and Net Landing to Individuals could offer intermediate trading moves, despite trade/political headlines likely directing the major sentiment, ahead of the US Personal Income/Consumption, Chicago Purchasing Managers’ Index and Michigan Consumer Sentiment Index.

Technical Analysis

Prices keep declining towards 14-day old support-line near 1.2120 unless breaking 50-day EMA level of 1.2330. It should also be noted that July 17 low near 1.2380 and monthly bottom surrounding 1.2015 could please momentum trading following either side breaks.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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