GBP/USD Forecast: Brexit overshadowed by pandemic developments

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2991

The UK reported 24,701 new cases and 310 deaths in the last 24 hours.
Brexit talks continue between the EU and the UK without progress reports.
GBP/USD has lost the 1.3000 threshold and is at risk of falling further.

As fears spurred demand for the greenback, the GBP/USD pair fell to a fresh weekly low of 1.2916, later recovering to the current 1.2990 price zone. Broad dollar’s strength led the way this Wednesday, as a second wave of coronavirus is hitting Europe hard, the United Kingdom included. The kingdom reported 24,701 new cases and 310 deaths in the last 24 hours, with new restrictions imminent. In the Brexit front, the impasse continues. Talks are underway, although there are no reports on progress.

Data wise, the UK published the BRC Shop Price Index, which declined 1.2% YoY in September, after falling 1.6% in the previous month. This Thursday, the country will publish September money figures and Mortgage Approvals for the same month.

GBP/USD short-term technical outlook

The 4-hour chart for the GBP/USD pair shows that buyers defended the downside around the 200 SMA, but currently remains below a flat 100 SMA and a bearish 20 SMA. Technical indicators in the mentioned time-frame have recovered from intraday lows but then turned flat within negative levels, leaving the risk skewed to the downside.

Support levels: 1.2920 1.2870 1.2830

Resistance levels: 1.3010 1.3060 1.3100

View Live Chart for the GBP/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.