The British pound has fallen towards key trendline support against the US dollar after British PM Theresa May failed to find the backing for a vote on her Brexit bill in UK Parliament.
March 29, OctaFX – Traders will continue to focus on the United Kingdom as Brexit confusion continues. Today, Theresa May is expected to present her plan to Parliament again. She has pledged to resign if the deal passes. Meanwhile, the country’s statistics office is expected to release key economic numbers.
The final reading of Q4 GDP numbers is expected to remain unchanged at 1.3% while business investment is expected to have dropped by minus 3.7%. In February, mortgage lending is expected to have gained to 3.70 billion pounds. However, traders will likely shrug these numbers and instead focus on the Brexit issue.
GBPUSD technical outlook
Sterling moved lower as traders wait for the Brexit vote expected later today. The pair is now trading at 1.3070, which is slightly below the important 38.2% Fibonacci Retracement level.
On the daily chart, the pair has formed a symmetrical triangle pattern, which could break-out in either direction. This will depend on the progress on the Brexit issue. If this happens, the key points to watch are the 1.3500 and 1.2800 levels.
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