The British Pound (GBP) held steady against the Dollar today as speculation mounted that the British government could delay the exit from the European Union (BRIC).
This comes as the deadline for the transition period and the negotiations between London and Brussels to get out of the common bloc approaches on March 29.
Following the British parliament's refusal to amend the EU's non-EU agreement, there was uncertainty about the fate of a deal that would ensure the UK remained within the bloc's customs union.
British Foreign Secretary Jeremy Hunt said it was likely that the BRIXEST would be delayed in the absence of preparations for Prime Minister Theresa May's government.
Investors are currently waiting for the British economy to release the Industrial PMI reading, which may reflect the contraction of the widening to 53.5 vs. 54.2 last December
On the other hand, markets are looking for the US economy to reveal labor market data for the month of December, which could reflect the stability of unemployment rates at 3.9% for the second month in a row after rising in December for the first time in four months from the lowest in nearly five decades of With average earnings per hour reflecting a slowdown in growth to 0.3% versus 0.4% in December.
The markets are also looking at the Non-Farm Payrolls, which may reflect a slower pace of job creation to 165,000 jobs versus 312,000 jobs added in December, before we see the final reading of the PMI by Market on the US last month, which may reflect the stability of the widening at a value of 54.9 versus 53.8 in December.
And the index of the Industrial Supply Institute index, which may show the stability of the widening at 54.1, unchanged from December, while the reading of the same indicator, measured in prices may narrow the breadth to 54.4 compared to 54.9, in conjunction with the final reading of the index Wholesale stocks that may reflect slower growth to 0.5% vs. 0.8% last November,
In addition to a reading of the Construction Spending Index, which could rise 0.2% from 0.1% in November and the final reading of the University of Michigan Consumer Confidence Index, which may reflect a widening to 90.8 from January's reading, January at 90.7 versus 98.3 in December, as well as consumer expectations of inflationary pressures for a year and five years.
Technical Analysis
GBPUSD found it difficult to confirm stability above 1.3125, to fall again and move towards the 1.3000 and then 1.2962 areas in the coming period, as the bearishness is likely for today.
Stochastic is attempting to gain a positive momentum gradually, awaiting the resumption of the bullish trend after the expected temporary decline for the coming period, noting that a breach of 1.3125 will stimulate the price to rally towards 1.3226 initially.
The trading range for today is expected among the support at 1.3000 and the resistance at 1.3190
Support and resistance:
Support: 1.1310-1.2969-1.2876
Resistance: 1.3125- 1.3192-1.3250
The general trend for today is bearish