Brexit headlines undermine demand for the British pound

Precio actual GBP/USD: 1.3886

  • The French government rejected the latest British regulation for fishing in its waters.
  • The UK Markit Manufacturing PMI expanded at a faster rate than expected in April.
  • GBP / USD is trading around the 1.3900 level with a neutral short-term stance.

The GBP / USD pair fell to 1.3838 in London trading hours amid lingering tensions between the UK and France over fishing rights. The French government rejected the latest British regulation for fishing in its waters near the Channel Islands. French fishermen have complained that they are being prevented from operating in British waters due to difficulties obtaining licenses, a Brexit-related issue that has intensified in recent weeks.

UK data was mixed as Markit’s manufacturing PMI for April stood at 60.9, better than the 60.7 previously estimated. Mortgage approvals for March fell to 82.7 thousand while consumer credit posted -0.5 billion pounds. The UK will not release relevant macroeconomic data on Wednesday, with speculative interest focused on the BOE’s monetary policy announcement next Thursday.

GBP / USD short-term technical outlook

GBP / USD is trading a few pips below the 1.3900 level, with a technical stance from neutral to bullish. The 4-hour chart shows that it is above its moving averages, although only a few pips above a bearish 20 SMA. The Momentum indicator advances around its 100 level while the RSI remains stable at 51. The pair bottomed around the 50% retracement of its April advance, but ends the day above the 38.2% retracement of the same rally. at 1.3880.

Support levels: 1.3880 1.3840 1.3800

READ  GBP / USD is approaching pre-Brexit levels in 2021

Resistance levels: 1.3930 1.3975 1.4010

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