GBP/USD: A bearish start to the week as UK PM hospitalized amid coronavirus

  • GBP/USD sold-into news that UK PM Johnson gets hospitalized.
  • Coronavirus risks will continue to boost have flows for the USD.
  • UK Construction PMI eyed amid a quiet macro day this Monday.

Amid reports that the UK Prime Minister (PM) Boris Johnson is admitted to hospital for some coronavirus-linked precautionary tests combined with persisting broad US dollar weakness, GBP/USD started out a fresh week on a negative note in Asia this Monday.

Coronavirus tightens grip over the UK

The cable remains the main laggard across the fx space so far, as the bears look to test the 0.2200 level, having eroded nearly 60-pips in early trades. The main catalyst behind the sharp drop is about the increased concerns over the PM Johnson’s health condition, as he gets hospitalized after dealing with mild virus symptoms for 10 days after being tested positive.

The Downing Street statement read, "On the advice of his doctor, the Prime Minister has tonight been admitted to hospital for tests. This is a precautionary step, as the Prime Minister continues to have persistent symptoms of coronavirus ten days after testing positive for the virus."

The recent chatter that the PM is put on the ventilator support is likely to aggravate the pain in the pound. Further, the ongoing strength in the US dollar vs. its six major rivals, in the wake of the increased safe-haven demand, as the pandemic intensifies worldwide and heightens the fears over a global economic recession, collaborates with the downside momentum in the spot, as the British currency gives up its last week’s resilience.

Meanwhile, on the data front, the greenback remained unperturbed by a 7 million drop in the US jobs for March, as the upbeat US ISM Non-Manufacturing PMI boded well for the buck. However, the UK Services PMI data for March was revised down to 34.5 points, which is likely to remain a drag on the sterling.  

In the day ahead, the updates on the PM Johnson’s condition will remain a key driver for the major alongside the US dollar dynamics, as the macro calendar Is relatively quiet, with the only UK Construction PMI of note. Meanwhile, all eyes will be on the UK government COVID-19 meeting, scheduled at 0815GMT for fresh trading impetus. The meeting will be chaired by the UK Foreign Secretary Raab and include the advisers and officials.

Note that the latest data published by the UK's health ministry revealed that the death toll from the coronavirus increased by 621 to 4,934. The total number of confirmed infections climbed to 47,806.

GBP/USD technical levels to watch


Today last price 1.2229
Today Daily Change -0.0041
Today Daily Change % -0.33
Today daily open 1.227
Daily SMA20 1.2224
Daily SMA50 1.2667
Daily SMA100 1.2862
Daily SMA200 1.2661
Previous Daily High 1.2408
Previous Daily Low 1.2205
Previous Weekly High 1.2476
Previous Weekly Low 1.2205
Previous Monthly High 1.3201
Previous Monthly Low 1.1412
Daily Fibonacci 38.2% 1.2283
Daily Fibonacci 61.8% 1.2331
Daily Pivot Point S1 1.2181
Daily Pivot Point S2 1.2092
Daily Pivot Point S3 1.1978
Daily Pivot Point R1 1.2384
Daily Pivot Point R2 1.2497
Daily Pivot Point R3 1.2587



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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more