GBP/USD: Off two-week high, below 1.2400, amid coronavirus crisis


  • GBP/USD remains on the back foot.
  • UK GDP to drop by 15%, coronavirus restrictions could last six months.
  • Intensive care limited to those almost certain to survive, the EU citizens in the UK are at the risk of being illegal.
  • UK’s death toll rises to 1,228 with 19,522 cases of infections including British PM Boris Johnson.

With the dire warnings on the UK’s economic growth crossing wires amid expectations of a longer lockdown, GBP/USD drops to 1.2375, down 0.60%, ahead of the London open on Monday. The surge in the virus figures and inclusion of the PM Boris Johnson recently weighed on the pair.

The Guardian relies on the Centre for Economics and Business Research (CEBR) report while conveying that the UK’s economic output can plunge by an unprecedented 15% in the second quarter of the year. The news also cites an increase in the death toll to 1,228 and 19,522 as positive cases including the national leader. Earlier, the global rating agency Fitch downgraded the UK’s credit rating from AA to AAA- with negative outlook.

Elsewhere, the UK Telegraph came out with the news that the intensive care for coronavirus patients now limited to those 'reasonably certain' to survive, as per the sources from the National Health Services (NHS) London Trust.

Furthermore, The Guardian cites the risk for the EU citizens who have made their homes in the UK to be illegal as the government diverts resources to fight coronavirus. Additionally, Dr. Jenny Harries, deputy chief medical officer for England, said during her daily press conference on Sunday that the current restrictions in the UK could last for six months.

On the contrary, US President Donald Trump anticipates the virus numbers to peak in the next two weeks while avoiding lockdowns in New York, New Jersey and Connecticut.

Amid all this, the market’s risk-tone remains heavy with the US 10-year treasury yields declining below 0.70% and most Asian stocks marking losses by the press time.

While the US Dallas Fed Manufacturing and Pending Home Sales are the only ones to decorate the economic calendar, virus headlines will be the key driver to follow.

Technical analysis

A daily closing below 21-day SMA level of 1.2350 could drag the quote to 38.2% Fibonacci retracement level of the pair’s declines from December 12, 2019, at 1.2217. On the upside, 50% Fibonacci retracement near 1.2470 acts as the immediate upside barrier.

GBP/USD

Overview
Today last price 1.2377
Today Daily Change -0.0077
Today Daily Change % -0.62
Today daily open 1.2454
 
Trends
Daily SMA20 1.2351
Daily SMA50 1.2737
Daily SMA100 1.2886
Daily SMA200 1.267
 
Levels
Previous Daily High 1.2486
Previous Daily Low 1.2133
Previous Weekly High 1.2486
Previous Weekly Low 1.1447
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.2351
Daily Fibonacci 61.8% 1.2268
Daily Pivot Point S1 1.2229
Daily Pivot Point S2 1.2005
Daily Pivot Point S3 1.1876
Daily Pivot Point R1 1.2582
Daily Pivot Point R2 1.271
Daily Pivot Point R3 1.2935

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: Bears attack 0.7700 ahead of China GDP

AUD/USD extends Friday’s downbeat momentum towards the 0.7700 threshold at the start of Monday’s Asian session. The Aussie pair declined the most since late October the previous day as the US dollar benefitted from the risk-off mood.

AUD/USD News

GBP/USD: Battles 1.3600 inside monthly rising wedge on 4H

GBP/USD fails to keep the uptick beyond 1.3606 during the initial Asian trading on Monday. The cable dropped to the lowest since January 12 on Friday but couldn’t slip beneath the 100-bar SMA.  The rising wedge formation on ...

GBP/USD News

Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest before dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures