Daily Briefing, March 13 – MPs Reject Theresa May’s Deal. How to Trade GBP/USD Today?
Arslan Butt • 2 min read
Good morning, traders.
As you know, Theresa May’s European Union withdrawal deal has been denied by an overwhelming majority of MPs for a second time. It’s putting the market under a huge level of uncertainty especially with just 17 days to go for Brexit.
The Members of Parliament rejected the Prime Minister’s deal by 149 which is a smaller margin than when they rejected it back in January 2019.
Now, what’s next? Let’s find out
USD PPI m/m
At 12:30 (GMT), the Bureau of Labor Statistics will release the Producer Price Index (PPI). The figures fell by -0.1% vs. a forecast of 0.1%. Economists haven’t released the current month’s forecast, however, any rise in PPI will extend support to the dollar.
USD Core Durable Goods Orders m/m
Today during the New York session, the data is due at 12:30 (GMT). For beginners, it’s a change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. It’s a leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
The US Durable Goods Orders rose by 1.2% vs 0.8% previously. Looks like it has to do with the US Partial Government Shutdown which has resumed now. Let’s see how these figures play this month.
Parliament Brexit Vote
The UK Parliament will vote to trigger Article 50 with no-deal with the European Union. What’s next?
Well, the British MPs will now get a vote on whether the UK should withdraw from the EU without a deal. Let’s say, if they reject to leave the EU without a deal, the Brexit should be delayed.
GBP/USD – Sideways Range, Wait for Breakout
- As we can see on the 4-hour chart of GBP/USD, the pair is stuck in a tight trading range of $1.3100 – $1.3050.
- The 100 periods moving average is extending a strong hurdle around $1.3100.
- The Stochastics and RSI are in the selling zone, supporting the bearish bias of investors.
- On the upper side, the violation of $1.3100 can lead the Cable towards 1.3140.
- The bearish breakout at $1.3050 can trigger sharp sell-off until $1.3000
GBP/USD – Technical Levels
Key Trading Level: 1.3115
GBP/USD – Trade Idea
I’m looking to enter a buying position on a bullish breakout of $1.3100 with a stop loss below $1.3075 and take profit around $1.3140.