GBP / USD hangs on the 50-day SMA and the Brexit deadline extension now puts the focus on party-to-party discussions

• Brexit party discussions and second-level data were expected to challenge nearby resistance.
• The 200-day SMA continues to provide strong support in the event of a decline.

The GBP / USD holds the SMA at 50 days around 1.3100 before opening Thursday in London. The cable first benefited from the results of the EU summit, which proposed an extension of the Brexit deadline. However, the uncertainty surrounding party-to-house discussions still challenges buyers.

Sterling (GBP) has already benefited from US statistical data and less optimistic minutes from the FOMC to cope with the optimism of extending the Brexit deadline.

Positive news on the market at the end of the EU summit, which provided for a flexible extension of the Brexit deadline from 12 April to 31 October, will also be eligible. The United Kingdom will also have the right to vote on the European elections and may also nominate its candidate. .

Traders are now waiting for details of the opposition Labor party's reaction to Prime Minister Theresa May's victory in extending the Brexit deadline without having a plan in hand.

The Tory-Worker Alliance experienced late difficulties while opposition leader Jeremy Corbyn was left with domestic problems and also with the question of the Irish border. parliament.

The general sentiment of market risk, as described by the 10-year US Treasury yield, appears balanced, with the measure being almost unchanged at close to 2.47%.

In addition to the Brexit tragedy, the monthly producer price index (PPI) and the first US jobless claims will also be closely monitored. The first jobless claims could go from 202K to 211K during the week ending April 5th. In addition, the PPI at 1.9% (YoY) is not expected to change, but it could increase by + 0.1% from + 0.1% if observing the monthly format. In addition, the PPI excluding food and energy could fall from 2.5% to 2.4% on the annual sequence, while the MoM figures could increase to + 0.2% from + 0.1. %.

GBP / USD Technical Analysis

Multiple highs around 1.3120 / 30 and a four-week downtrend line at 1.3155 could continue to limit the rise in GBP / USD before shifting the market's focus to 1.3180 and above. 1.3200.

For sellers, the 1.3015 and 1.3000 can provide support nearby, while the 200 day simple moving average (SMA) of 1.2975 and the 100 day SMA level of 1.2940 could become the Bears favorites then.