GBP/USD remains on the road to recovery, ignores no-deal Brexit concerns

• Despite looming hard Brexit concerns, the GBP/USD pair recovers.
• Speculations concerning no-confidence motion against the UK PM fail to stop him from supporting no-deal Brexit.
• EU leaders have also realized that there is no point discussing Brexit deal with the UK.

GBP/USD fails to portray pessimism surrounding the no-deal Brexit as it pulls back to 1.2160 while heading into the London open on Tuesday. Given the summer recess in the British Parliament, investors may keep an eye over macro news/headlines for fresh direction.

The UK Prime Minister (PM) Boris Johnson’s no-deal Brexit preparations have caught an ire from the opposition as the Labour party leader vows to call a no-confidence motion once the Parliament reconvenes at September-start. The EU lawmakers are also not positive for the Brexit deal discussion with the UK, as per the Sky News, considering PM Johnson’s tough stand against the previously discussed deal with the ex-PM Theresa May.

Elsewhere, trade/political news has been influential since the Asian start as the US formally termed China as a currency manipulator and North Korea test-fired fourth round of missiles.

Additionally, speculations that the US could test intermediate-range missile after exiting the Intermediate-range Nuclear Forces Treaty pushed Chinese diplomats towards warnings the world’s largest economy if it undertakes any such tests targeting Asia.

Risk tone has badly been affected off-late with the US 10-year treasury yield and the German Bund yields making the rounds to multi-month lows.

While the US JOLTS Job Openings, for June, is the only economic data on the calendar, traders might emphasize political/trade news for fresh impulse.

Technical Analysis

Buyers are on the lookout for the sustained break beyond July-end high of 1.2250 in order to aim for 1.2300. However, an area comprising July 17 low and July 29 high near 1.2382/85 could restrict pair’s further upside. Meanwhile, pair’s break below the latest low surrounding 1.2080 holds the key to a decline towards 1.2000 round-figure.