GBP/USD: Recovery underway towards 50-day SMA as no-deal Brexit becomes law

• Pound buyers remain positive as the no-deal Brexit is off the table now (at least form the UK side).
• Cross-party Brexit talks continue to gain market attention ahead of the Wednesday’s EU summit.

The British Pound (GBP) is on the bids near 1.3060 versus the US Dollar (USD) during early Tuesday. The GBP/USD pair stretched its previous recovery overnight as the amendment staving no-deal Brexit gained royal assent and has become law. However, the cross-party talks on the Brexit are still far from any noticeable results and could continue signaling uncertain times ahead of this week’s EU summit.

The Pound buyers again refrained from declining beneath 200-day simple moving average (SMA) on Monday as the UK House of Lords approved the Cooper-Letwin amendment that restricts no-deal Brexit and forces the PM Theresa May to avail further extension beyond April 12.

As a procedure, the bill then came back to the lower house for reconsideration where the British lawmakers welcomed the Lords’ decision with zeal as the vote counts show 390 ayes against 81 no. Past-result, the bill appeared for the royal asset where it ended up being a law.

Despite no-deal Brexit is off the table, for now, British lawmakers aren’t still done with the problem as the EU has already shown their readiness to extend the Brexit deadline only if it is backed by a plan.

The US 10-year Treasury Yield gain nearly 2 basis points to 2.52% as investors welcome the Brexit positive news report.

The Labours and the Tories are jostling for the Brexit deal and will continue the discussion during the day whereas the UK PM Theresa May will head to EU summit on Wednesday for a crucial meeting with the regional lawmakers to avail further Brexit extension.

There doesn’t seem any important data scheduled for release but the US JOLTS job opening for February may offer intermediate moves. The employment indicator could soften to 7.550M from 7.581M.

GBP/USD Technical Analysis

Sustained trading above 200-day SMA enables the quote to aim for 1.3095–1.3100 area comprising 50-day SMA, a break of which can further escalate the recovery towards four-week-old trend-line at 1.3180 now.

Given the pair’s dip under 200-day SMA level of 1.2975, 1.2930 including 100-day SMA may gain sellers’ attention whereas 1.2900 may lure them afterward.