• GBP/USD extends losses, with 1.3200 at risk amid intensifying risk-off trades.
  • Uncertainties around Omicron restrictions in the UK pound the pound.
  • USD fails to benefit from risk-off flows, as Treasury yields sink across the curve.

GBP/USD is trading close to 1.3200, meandering near daily lows, as the sentiment around the pound remains weighed down by the growing uncertainties surrounding the Omicron covid variant-induced restrictions in the UK.

The latest selling wave was triggered by the comments from the UK Deputy Prime Minister Dominic Raab, citing that he cannot guarantee further restrictions, as the Kingdom nears the festive period.

Meanwhile, Germany and France have already imposed border control for travelers from the UK. Britain reported 82,886 new coronavirus cases, bringing the total number of coronavirus cases in the country to 11,361,387. Out of these 82,886 cases, 12,133 were Omicron infections. 

British Health Secretary Sajid Javid is expected to announce on Monday whether social mixing will be curtailed over the Christmas period.

On the latest Brexit update, UK Foreign Secretary Liz Truss is likely to take over negotiations with the EU on the Northern Ireland Protocol following the dramatic resignation of David Frost. Frost stepped down, blaming the “current direction of travel” of the PM’s party.

Looking ahead, the Omicron stats from the UK will continue to impact the GBP valuation amid a sparse calendar. Meanwhile, the risk-off flows will continue to boost the US Treasuries while weighing heavily on the yields, which will eventually cap the dollar’s bullish potential. Although, Javid’s announcement and Brexit news will play a bigger role on cable’s trades on Monday.  

GBP/USD: Technical levels to consider

GBP/USD

Overview
Today last price 1.3196
Today Daily Change -0.0036
Today Daily Change % -0.27
Today daily open 1.3235
 
Trends
Daily SMA20 1.3283
Daily SMA50 1.3482
Daily SMA100 1.3613
Daily SMA200 1.3768
 
Levels
Previous Daily High 1.334
Previous Daily Low 1.3235
Previous Weekly High 1.3374
Previous Weekly Low 1.3172
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.3275
Daily Fibonacci 61.8% 1.33
Daily Pivot Point S1 1.32
Daily Pivot Point S2 1.3166
Daily Pivot Point S3 1.3096
Daily Pivot Point R1 1.3305
Daily Pivot Point R2 1.3374
Daily Pivot Point R3 1.3409

 

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 clings to strong daily gains, stays below 1.0700

EUR/USD clings to strong daily gains, stays below 1.0700

EUR/USD has gone into a consolidation phase after having climbed to its highest level in nearly a month at 1.0687 in the European session. ECB President Lagarde's hawkish comments and the broad-based selling pressure surrounding the dollar fueled the pair's rally at the beginning of the week.

EUR/USD News

GBP/USD retreats modestly after testing 1.2600

GBP/USD retreats modestly after testing 1.2600

GBP/USD has edged slightly lower after having tested 1.2600 in the European session. With the dollar facing heavy selling pressure in the risk-positive market environment, however, the pair clings to strong daily gains ahead of BOE Governor Bailey's speech.

GBP/USD News

Gold climbs to two-week high at $1,865 amid weaker USD

Gold climbs to two-week high at $1,865 amid weaker USD

Gold capitalizes on the improving market mood and the weakening dollar on Monday, trading at its highest level in two weeks above $1,860. The benchmark 10-year US Treasury bond yield is up more than 1%, limiting XAU/USD's upside for the time being.

Gold News

Cardano whales enter buying spree before the Vasil hard fork

Cardano whales enter buying spree before the Vasil hard fork

Cardano price is showing an interesting set up as it struggles to make a move above a crucial support level. A rejection could lead to a buying opportunity for patient investors before ADA explodes.

Read more

Week Ahead on Wall Street: Options expiry to the rescue on Friday but its official, we are in a bear market

Week Ahead on Wall Street: Options expiry to the rescue on Friday but its official, we are in a bear market

Another wild and volatile week which seems to be the tone so far for 2022. Wild swings throughout the week were mirrored on Friday with wild intraday swings. The S&P 500 did manage to slide into a bear market territory on Friday.

Read more

Forex MAJORS

Cryptocurrencies

Signatures