GBP/USD: Irish backstop and the UK construction PMI become immediate issues to watch

• GBP/USD remains under 1.3100 during early Monday ahead of UK Construction PMI and British leaders’ meet over Irish backstop alternatives.
• Immediate descending trendline confine the pair’s upside around 1.3135 now with 1.3000 being adjacent support to watch.

With the Brussels’ sustained refrain to respect the UK PM Theresa May’s Plan B for Brexit, British policymakers are struggling to sort the tough issues. The EU leaders’ another turn down to Irish boarder backstop plan, the UK Prime Minister is forced to search for alternative ways to get her plan move ahead before the clock ticks to the departure day of March 29. Other than Irish backstop, January month Construction PMI will also bear attention.

In order to discuss over the alternative ways for Irish backstop, the Alternative Arrangements Working Group, will get together on Monday. The leaders will emphasize over technological advancements to avoid the hard border. On the frontline, senior government leaders, including Brexit Secretary Stephen Barclay, will also discuss alternatively ways to Irish backstop during this week.

At the data front, the January month Construction purchasing manager index (PMI) is expected to print 52.6 against 52.8 figure for the month of December 2018.

While UK policymakers are trying hard to mark progress on Brexit, UK Times reported that Scottish first minister’s speech for Monday may term the Brexit as nowhere near ready together with emphasizing on another referendum. However, it should be noted that Scotland’s first minister, Nicola Sturgeon, was against the Brexit.

With the clock ticking faster in absence of any progress over Brexit, GBP/USD is up for another volatile session.

Technically, an immediate descending trend-line at 1.3135 now, can confine the GBP/USD’s near-term upside. Given the pair manages to cross the 1.3135 barrier, the 1.3200 may regain market attention.

On the downside, the 1.3000 round-figure seem immediate support, breaking which 1.2925 and the 1.2900 can gain sellers’ attention. Also, pair’s sustained downturn under 1.2900 may print 1.2850 on the chart.