• GBP/USD seesaws around monthly high amid holiday-thinned trading session.
  • UK covid infections refresh record top, PM Johnson may unveil new activity restrictions for London.
  • Chancellor Sunak braces for job cuts over the next three years, UK voters believe Brexit has gone badly, worse.
  • Off in the UK, a light calendar could restrict market moves.

GBP/USD takes rounds to 1.3400 during an inactive Asian session on Monday. The cable pair snapped a three-day uptrend near the monthly high the previous day as fears over South Africa-linked covid variant and Brexit escalate. However, an offer in the UK and holiday mood elsewhere in the west restricts the market’s moves of late.

With a sustained run-up beyond 100,000 daily covid infections in the UK, recently around 120,000 cases, the British policymakers are pushed to consider experts’ advice for tougher activity restrictions. “Prime Minister Boris Johnson and his Cabinet are expected to review the latest data and advice from experts on Monday to decide if further restrictions need to be brought in for England as well,” said LiveMint. It’s worth noting that Wales, Scotland and Northern Ireland have fresh virus-led lockdown measures starting from Sunday.

On a different page, a survey from the research and strategic insight agency Opinuim states, “Six out of 10 voters in the UK now believe that the country's split from the European Union has either gone bad or worse than they expected.” The findings also mentioned, “42% of people who voted to leave the EU in 2016 now have a negative view of how Brexit has materialized.”

It’s worth noting that the UK’s newly appointed Brexit Minister Liz Truss held her first phone talks with European Commission vice-president Maros Sefcovic but couldn’t provide any major positives.

Elsewhere, UK Chancellor Rishi Sunak is said to prepare for job cuts on the UK civil service across Whitehall over the next three years, per the Financial Times (FT). “Sunak is working with the Cabinet Office to oversee the cuts as part of efforts to secure savings worth 5% of Whitehall departments’ day-to-day spending budgets by 2024-25,” the news adds.

On a broader front, the Omicron woes are firming and so do the Russia-Ukraine tussles, which in turn weigh on the GBP/USD prices. However, optimism surrounding President Joe Biden’s Build Back Better (BBB) stimulus plan and an 8.5% jump in US retail sales, per Mastercard data, challenge the pair bears.

Amid these plays, GBP/USD prices grind higher surrounding the monthly peak but the bears remain hopeful considering the negatives.

Given the off in the UK and holiday mood across the board, GBP/USD may remain sidelined. However, US Dallas Fed Manufacturing Index for December, expected 13.2 versus 11.8 prior, can offer intermediate moves, in addition to the Brexit and covid headlines.

Technical analysis

Failures to cross 50-day EMA and 38.2% Fibonacci retracement of October-December declines, around 1.3415-20, keep GBP/USD sellers hopeful to revisit the sub-1.3300 area. However, tops marked during November 30 and mid-December around 1.3375-70 offer immediate support to the cable pair.

Additional important levles

Overview
Today last price 1.3405
Today Daily Change -0.0009
Today Daily Change % -0.07%
Today daily open 1.3414
 
Trends
Daily SMA20 1.3277
Daily SMA50 1.345
Daily SMA100 1.3585
Daily SMA200 1.3754
 
Levels
Previous Daily High 1.3421
Previous Daily Low 1.3384
Previous Weekly High 1.3438
Previous Weekly Low 1.3174
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.3398
Daily Fibonacci 61.8% 1.3407
Daily Pivot Point S1 1.3392
Daily Pivot Point S2 1.3369
Daily Pivot Point S3 1.3354
Daily Pivot Point R1 1.3429
Daily Pivot Point R2 1.3444
Daily Pivot Point R3 1.3467

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD has turned south and declined toward 0.9600 in the second half of the day on Monday. A sharp decline witnessed in the GBP/USD pair and the souring market mood provided a boost to the dollar, lifting the US Dollar Index back above 114.00. 

EUR/USD News

GBP/USD falls below 1.0700 following BoE statement

GBP/USD falls below 1.0700 following BoE statement

GBP/USD came under renewed bearish pressure and slumped below 1.0700 during the American trading hours. In a statement published on Monday, the Bank of England said that they welcome the government's commitment to sustainable economic growth, triggering another GBP selloff.

GBP/USD News

Gold could soon challenge the $1,600 level

Gold could soon challenge the $1,600 level

Demand for the dollar continued at the beginning of the week, resulting in XAUUSD plummeting to $1,626.67, its lowest since April 2020. Concerns about potential recessions undermined the dismal market’s mood, pushing the greenback higher despite its extreme overbought conditions.

Gold News

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin price has been devoid of volatility for the last week and has been in a tight consolidation without directional bias whatsoever. This range bound move has formed a triangle pattern which could break either way. 

Read more

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures