GBP/USD Forecast: New restrictions and Brexit jitters hit Sterling
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Subscribe to PremiumGBP/USD Current price: 1.2889
- EU’s negotiator Barnier said that the UK needs to agree to a level playing field.
- The UK government lift the level of restrictions in the London area.
- GBP/USD has lost the 1.2900 level, steeper decline at sight.
The GBP/USD pair has shed all of its Wednesday’s gains on the back of risk aversion, falling below the 1.2900 price zone, where it stands heading into the Asian opening. The British Pound suffer extra pressure from headlines indicating that the London area is moving into the high level of alert this Saturday, amid the sharp increase in new coronavirus contagions. This means that more than half of England's population will now be living under high alert restrictions.
Meanwhile, UK's chief Brexit negotiator, David Frost, reiterated that the UK wants to reach a trade deal with the EU. He later complained that the EU is no longer committed to working intensively. EU’s Michel Barnier, on the other hand, said that the Union would do everything possible to reach a deal, although he clarified that “not at any price.” Barnier repeated that the UK needs to agree to a level playing field if it wants access to the EU market. The UK won’t release relevant macroeconomic data this Friday.
GBP/USD short-term technical outlook
The GBP/USD pair trades near its daily lows and seems poised to extend its decline. The 4-hour chart, however, shows that the pair continued to meet buyers around a directionless 100 SMA, although the 20 SMA is gaining bearish strength above the current price. Technical indicators, in the meantime, hold within negative levels, reflecting the absence of buying interest.
Support levels: 1.2860 1.2815 1.2770
Resistance levels: 1.2940 1.2995 1.3040
GBP/USD Current price: 1.2889
- EU’s negotiator Barnier said that the UK needs to agree to a level playing field.
- The UK government lift the level of restrictions in the London area.
- GBP/USD has lost the 1.2900 level, steeper decline at sight.
The GBP/USD pair has shed all of its Wednesday’s gains on the back of risk aversion, falling below the 1.2900 price zone, where it stands heading into the Asian opening. The British Pound suffer extra pressure from headlines indicating that the London area is moving into the high level of alert this Saturday, amid the sharp increase in new coronavirus contagions. This means that more than half of England's population will now be living under high alert restrictions.
Meanwhile, UK's chief Brexit negotiator, David Frost, reiterated that the UK wants to reach a trade deal with the EU. He later complained that the EU is no longer committed to working intensively. EU’s Michel Barnier, on the other hand, said that the Union would do everything possible to reach a deal, although he clarified that “not at any price.” Barnier repeated that the UK needs to agree to a level playing field if it wants access to the EU market. The UK won’t release relevant macroeconomic data this Friday.
GBP/USD short-term technical outlook
The GBP/USD pair trades near its daily lows and seems poised to extend its decline. The 4-hour chart, however, shows that the pair continued to meet buyers around a directionless 100 SMA, although the 20 SMA is gaining bearish strength above the current price. Technical indicators, in the meantime, hold within negative levels, reflecting the absence of buying interest.
Support levels: 1.2860 1.2815 1.2770
Resistance levels: 1.2940 1.2995 1.3040
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