GBP/USD: Bulls attack 1.3300 as Brexit optimism joins virus treatment hopes


  • GBP/USD picks up bids towards the monthly high, prints seven-day winning streak.
  • UK Times mark Whitehall source to cite Brexit deal, The Guardian quotes Chancellor Sunak to mark Britain’s tough stand.
  • Pfizer will soon get the UK’s approval, Regeneron’s antibody treatment gets FDA’s green light.
  • UK/US PMIs, Brexit headlines and virus/vaccine updates are the key.

GBP/USD refreshes intraday high to 1.3298 during the initial Asian session on Monday. The pair recently gained bids as the market turns optimistic concerning the Brexit deal and the coronavirus (COVID-19) vaccine. However, challenges to the Fed’s emergency programs and the rising virus figures in the northern hemisphere challenge the pair bulls.

Brexit deal not at any cost…

The UK Times cites an anonymous British government source to suggest that there are increasing expectations of a deal. The Sky follows the suit while citing the European Union’s (EU) side while indicating 95% chances of a Brexit deal. However, the piece also mentioned increased uncertainty over the key issues like fisheries, governance and competition rules that highlight the anxiety.

On the other hand, The Guardian quotes UK Finance Minister Rishi Sunak to probe the bulls while highlighting the British government’s readiness to step back from the deal if it’s not in their favor. The diplomat said, per the news, “We should not be going for a deal at any price, that would be the wrong thing to do and I think there are things that are important to us in these negotiations, and we’ve been entire, as I said, reasonable, consistent and transparent.”

Also on the negative side are the fears that the US Federal Reserve (Fed) will soon have to hand over $500 billion of emergency program funds to Treasury Secretary Steve Mnuchin.

Elsewhere, virus treatments are battling the risk-off mood. The Telegraph came out with the news suggesting that Pfizer will soon get approval from the UK government for its COVID-19 vaccine whereas Regeneron’s antibody treatment gets a go from the US Food and Drug Administration (FDA). It should also be noted that chatters surrounding a gradual easing of the covid-led activity restrictions also favor the GBP/USD bulls off-late.

Against this backdrop, S&P 500 Futures mark 0.10% intraday loss by press time.

Moving on, GBP/USD traders will pay close attention to the preliminary readings of November month PMI data for fresh impetus. Though, this doesn’t dim the importance of virus, vaccine and Brexit updates.

Technical analysis

A clear break above the monthly high near 1.3315 becomes necessary for the bulls before challenging the yearly top of 1.3482. Meanwhile, a 10-day SMA near 1.3240 offers immediate support to watch during the quote’s pullback moves.

Additional important levels

Overview
Today last price 1.3298
Today Daily Change 5 pips
Today Daily Change % 0.04%
Today daily open 1.3293
 
Trends
Daily SMA20 1.3119
Daily SMA50 1.2999
Daily SMA100 1.2982
Daily SMA200 1.2719
 
Levels
Previous Daily High 1.3298
Previous Daily Low 1.3247
Previous Weekly High 1.3312
Previous Weekly Low 1.3166
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.3278
Daily Fibonacci 61.8% 1.3266
Daily Pivot Point S1 1.3261
Daily Pivot Point S2 1.3228
Daily Pivot Point S3 1.321
Daily Pivot Point R1 1.3312
Daily Pivot Point R2 1.333
Daily Pivot Point R3 1.3362

 

 

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 remains pressured after US data misses estimates

EUR/USD has rocked and rolled in response to US consumer data. The Federal Reserve's critical meeting is in the spotlight. Mid-September's daily chart is painting a mixed picture. The FX Poll is pointing to short-term falls and a bullish trend afterward.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

Gold bears in driver's seat as focus shifts to FOMC

Gold started the week in a relatively calm manner and continued to fluctuate in the previous week’s horizontal channel on Monday. Gold's technical outlook turned bearish following Thursday's sharp decline. Next target on the downside for XAU/USD is located at $1,730.

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

Central Bank fest

In terms of central bank meetings, the week ahead is one of the busiest.  No fewer than 13 central banks hold policy meetings, divided between six major and seven emerging markets.  While the significance of US monetary policy for the world makes the FOMC meeting a highlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures