GBP/USD – British pound snoozes through Brexit fireworks

GBP/USD continues to drift this week. In Wednesday’s North American trade, the pair is trading at 1.3207, up 0.01% on the day. On the release front, British CBI Realized Sales shocked with a reading of -18, compared to the forecast of 5 points. There are no major U.S. indicators out of the United States. On Thursday, the U.S. releases Final GDP and unemployment claims.

The Brexit saga continues at a fever pitch, with new developments on almost daily basis. Remarkably, the pound continues to show little movement this week. On Monday, lawmakers voted to take control of the Brexit process away from the government. Parliament is holding votes on various non-binding alternatives. These could range from a hard Brexit to holding a second referendum. The EU extended the March 29 Brexit deadline last week. If May’s withdrawal deal fails to pass for a third time, the U.K. would leave the EU on April 12 without an agreement. If the deal is approved, the deadline would be extended until May 22. Today’s parliamentary proceedings are detailed at the link below:

Today’s U.K Parliament Brexit Agenda

After a sharply dovish Fed meeting last week, risk apprehension has risen considerably. This could mean headwinds for the Canadian dollar, a minor currency. The Fed said that it had no plans to raise rates before 2019, and also lowered its growth forecast for 2019 to 2.1%, down from 2.3% in December. On Friday, the spread between 3-month and 10-year Treasury notes turned negative, signifying an inverted yield curve. All eyes will be on U.S. Final GDP, which will be released on Thursday and should be treated as a market-mover.

Lest we quickly forget

GBP/USD Fundamentals

Wednesday (March 27)

• 7:00 British CBI Realized Sales. Estimate 5. Actual -18
• 8:30 US Trade Balance. Estimate -57.2B. Actual -51.1B
• Tentative – US Current Account. Estimate -130B
• 10:30 US Crude Oil Inventories. Estimate -1.1M
• 17:30 US FOMC Member George Speaks

Thursday (March 28)

• 8:30 US Final GDP. Estimate 2.4%
• 8:30 US Unemployment Claims. Estimate 222K
• 20:01 GfK Consumer Confidence. Estimate -14

*All release times are DST

*Key events are in bold

GBP/USD for Wednesday, March 27, 2019

GBP/USD March 27 at 12:15 DST

Open: 1.3205 High: 1.3246 Low: 1.3167 Close: 1.3207

GBP/USD Technical

GBP/USD posted slight losses in the Asian session. The pair reversed directions in European trade and posted gains. The pair has recorded small losses in North American trade

• 1.3170 is providing support
• 1.3258 is the next resistance line
• Current range: 1.3170 to 1.3258

Further levels in both directions:

• Below: 1.3170, 1.3070, 1.2910 and 1.2841
• Above: 1.3258, 1.3362 and 1.3460

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