- GBP/USD prints six-day downtrend to refresh 11-month low.
- Brexit war escalates between the UK and France, EU’s Šefčovič to visit London for further NI border talks.
- UK HSA announces technical meeting to brief over virus variant, fears of Fed rate hike at the wrong time add to the risk-off mood.
- Yields, Brexit and covid headlines are the key for fresh impulse.
GBP/USD extends the five-day downtrend towards refreshing 2021 low near 1.3300 heading into Friday’s London open.
The cable’s latest weakness could be linked to the broad market fears over the coronavirus variant and the Brexit woes. However, bears seem to wait for the outcome of European Commission's Brexit point person Maroš Šefčovič’s UK visit on Friday, not to forget the UK Health Security Agency (UKHSA) technical briefing to discuss the variant covid variant.
While portraying their disappointment from the fishing licensing rules, the French fishermen are ready to block the Channel Tunnel and major ports on Friday. The UK government has already urged the policymakers to not use illegal means but the same is less likely to stop the French outrage.
However, the London visit of EU’s Brexit officer Maroš Šefčovič may please the British diplomats should the parties agree over the Northern Ireland (NI) border protocol that shows positive progress of late.
Elsewhere, the Bank of England (BOE) Governor Andrew Bailey rejected inflation fears the previous day and tamed the hopes of the rate hike. It’s worth noting that the firmer UK jobs report, inflation data and the PMI figures have previously fuelled the chatters over the rate hike from the “Old Lady”.
On a broader front, fears that the Fed’s rate hike will be delivered at the wrong time weigh on the market sentiment and underpin the US dollar’s safe-haven demand. That said, the covid-19 woes spread outside the initial fear-zone of Europe on concerns relating to the variant, with a formal name of B.1.1.529, which is linked to South Africa and is immune to the vaccines. For the same, the World Health Organization (WHO) and UKHSA have called for special meetings on Friday.
Moving on, the results from Brexit talks and UKHSA will be crucial for the GBP/USD moves while the bears hold the reins.
The 61.8% Fibonacci Expansion (FE) of the pair’s moves between November 03 and 18, around 1.3300 offers strong immediate support to the GBP/USD prices. Even if the sellers manage to conquer the psychological magnet, the stated channel’s lower line may act as an extra filter to the south, around 1.3275, before directing the quote towards the 78.6% FE level of 1.3240.
Additional impotant levels
|Today last price||1.3301|
|Today Daily Change||-0.0021|
|Today Daily Change %||-0.16%|
|Today daily open||1.3322|
|Previous Daily High||1.3354|
|Previous Daily Low||1.3305|
|Previous Weekly High||1.3514|
|Previous Weekly Low||1.3396|
|Previous Monthly High||1.3834|
|Previous Monthly Low||1.3434|
|Daily Fibonacci 38.2%||1.3324|
|Daily Fibonacci 61.8%||1.3335|
|Daily Pivot Point S1||1.3301|
|Daily Pivot Point S2||1.3279|
|Daily Pivot Point S3||1.3253|
|Daily Pivot Point R1||1.3349|
|Daily Pivot Point R2||1.3375|
|Daily Pivot Point R3||1.3397|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.