• GBP/USD is in bearish consolidation amid fresh covid and Brexit jitters.
  • Safe-haven USD holds the reins starting out a fresh week.
  • Covid updates, risks trends to lead the sentiment amid a light docket.

GBP/USD is trading modestly flat below 1.3350, consolidating its recovery from eleven-month lows of 1.3278 amid a minor improvement in the risk sentiment.

Despite the risk reset, the risks remain skewed to the downside for the major, as it continues to bear the brunt of the latest Omicron covid variant and ongoing Brexit woes.

Omicron woes add to the Brexit pain

The risk sentiment took a hit in early Asia, helping the rebound in the US dollar across the board, as fears over the latest covid strain took over and rattled markets. South Africa's latest surge of COVID-19 cases, apparently driven by the new variant is leading countries around the world to impose new restrictions.

However, markets are trying to find their feet amid a few optimistic news concerning the new variant, with Professor Dror Mezorach, head of the coronavirus department at Hadassah University Hospital Ein Karem, noting that the clinical condition of people infected with Omicron is encouraging.

Despite the risk recovery, the sentiment around the pound is likely to remain undermined, courtesy of the ongoing Brexit concerns. The European Commission's vice president Margaritis Schinas on Saturday told Britain it has to sort out its own migrant problems post-Brexit.

Meanwhile, French President Emmanuel Macron hit out at the UK Prime Boris Johnson on Friday over a tweeted letter, accusing him of being “not serious”. This is in light of the persistent tensions over the French-UK fishing row.

Looking ahead, amid the data-light UK and US economic calendar on Monday, the Omicron covid variant updates and their impact on the risk sentiment will continue to lead the way.

Investors will reassess the Bank of England’s (BOE) rate hike expectations, in the face of the latest covid strain, which could be an additional downer for the British currency.

GBP/USD: Technical levels to consider

GBP/USD

Overview
Today last price 1.3334
Today Daily Change -0.0017
Today Daily Change % -0.13
Today daily open 1.3353
 
Trends
Daily SMA20 1.3466
Daily SMA50 1.3586
Daily SMA100 1.3695
Daily SMA200 1.3821
 
Levels
Previous Daily High 1.3361
Previous Daily Low 1.3278
Previous Weekly High 1.3457
Previous Weekly Low 1.3278
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3329
Daily Fibonacci 61.8% 1.331
Daily Pivot Point S1 1.3301
Daily Pivot Point S2 1.3248
Daily Pivot Point S3 1.3218
Daily Pivot Point R1 1.3383
Daily Pivot Point R2 1.3413
Daily Pivot Point R3 1.3466

 

 

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