GBP/USD: Buyers aim for 1.3100 ahead of cross-party Brexit talks

• The cross-party Brexit talks can facilitate the UK PM May to request for an extension at the Wednesday’s EU summit.
• 50-day SMA and 200-day SMA can confine the quote’s near-term moves between 1.3100 and 1.2975 respectively.

The GBP/USD pair is taking the bids around 1.3080 ahead of the London open on Tuesday. Buyers welcome recent positive developments surrounding the Brexit but are yet to pass through the final results from the cross-party talks and the EU summit in order to maintain the grip.

Earlier during the day, Pound bulls cheered the Cooper-Letwin bill turning into a law and avoiding no-deal Brexit (at least from the UK side). It should also be noted that the quote benefited from the US Dollar (USD) weakness and also on the hope that the cross-party talks may help to deliver a soft Brexit.

Having witnessed multiple defeats for her Brexit proposals, the British Prime Minister Theresa May has finally shown readiness to call the opposition Labour party to break the Brexit deadlock.

There hasn’t been any positive result out of the talks between the two rivals and the recent news from The Guardian coveys that the opposition leader, Jeremy Corbyn, repeated a call for the prime minister to show more willingness to compromise after discussions resumed on Monday. The talks will continue on Tuesday as a sign of last-ditched effort to gain a raw Brexit deal.

Even if the UK lawmakers voted to stave no-deal Brexit and avail further extension from April 12 deadline, the EU has already made it clear that it wants a basic plan on how the extension will be used if one year of flexible stretch is given to the UK.

Hence, PM May needs something on hand to convince the EU lawmakers before requesting the Brexit deadline extension when she heads for Wednesday’s EU summit. In order to do so, a raw departure deal must be on hand and hence signifies the importance of recent cross-party talks.

Additionally, 10-year US Government Bond Yield is offering an increase of nearly one basis point to 2.522%.

On the data front, there seems no major figure except the US JOLTS job openings for February month that could flash 7.550 million mark against 7.581 million prior.

GBP/USD Technical Analysis

Considering the Bulls dominance, 1.3095–1.3100 area comprising 50-day simple moving average (SMA) is likely to be on their immediate target while four-week-old trend-line at 1.3180 can question them afterward.

Meanwhile, 1.3000 and 200-day SMA level of 1.2975 may act as nearby supports for the pair, a break of which can recall 100-day SMA level of 1.2900 on the chart.