• GBP/USD fades corrective pullback from 2021 bottom, down for third consecutive day.
  • EU barred UK from Horizon research scheme on ‘trust’ issues, Christmas spirit challenged on Brexit deadlock.
  • Britain announced fresh virus-led activity restrictions called “plan B”.
  • Second-tier US data, risk catalysts are important for near-term directions.

GBP/USD hovers around 1.3200 following a failed attempt to bounce off the 2021 bottom, marked the previous day, during the initial Asian session on Thursday.

The cable pair refreshed multi-day low after the UK announced fresh measures to tame the spread of the coronavirus. Also adding to the quote’s weakness were the Brexit headlines and firmer US Treasury yields.

Having witnessed a doubling of the COVID-19 variant cases in 2-3 days, UK PM Boris Johnson announced that the UK will move to Covid-19 "plan B". The fresh measures include guidance to work from home, face mask requirements for visiting public venues and push for the National Health Services (NHS) Covid Pass.

On the other hand, concerns that the Brexit tussle between the European Union (EU) and the UK is likely to weigh on the supply-chains and roil Christmas gained momentum. The latest Brexit-negative headlines were shared by The Telegraph that said, “The United Kingdom has been shut out of the Horizon research scheme because the European Union does not "trust" the British Government.” The UK news adds, “The British access to the £77billion program was confirmed during the Brexit negotiations but has been pushed back after the two sides locked horns over key issues this year.”

It’s worth noting that the firmer US Treasury yields, backed by upbeat second-tier US employment-linked data, exert additional downside pressure on the GBP/USD prices. Also favoring the bears were fears emanating from the latest diplomatic tensions between the US and Russia, as well as Sino-American tussles.

While Brexit and the covid headlines are the keys to determining short-term GBP/USD moves and are likely to keep the bears hopeful, Friday’s US Consumer Price Index (CPI) data and other risk catalysts are important to watch as well.

Technical analysis

A downward sloping trend line from late October directs GBP/USD prices towards December 2020 lows near 1.3130.

Additional important levels

Overview
Today last price 1.3207
Today Daily Change -0.0036
Today Daily Change % -0.27%
Today daily open 1.3243
 
Trends
Daily SMA20 1.3357
Daily SMA50 1.3533
Daily SMA100 1.366
Daily SMA200 1.3795
 
Levels
Previous Daily High 1.3289
Previous Daily Low 1.3209
Previous Weekly High 1.3371
Previous Weekly Low 1.3194
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.324
Daily Fibonacci 61.8% 1.3259
Daily Pivot Point S1 1.3205
Daily Pivot Point S2 1.3167
Daily Pivot Point S3 1.3125
Daily Pivot Point R1 1.3285
Daily Pivot Point R2 1.3327
Daily Pivot Point R3 1.3365

 

 

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 keeps rallying towards 1.0700 on hawkish Lagarde

EUR/USD keeps rallying towards 1.0700 on hawkish Lagarde

EUR/USD is pushing higher towards 1.0700, as the euro capitalizes on the upbeat German IFO and hawkish ECB Chief Lagarde. Lagarde said ECB is in a position to exit negative rates by end of Q3. The US dollar extends its sell-off amid risk-on flows. 

EUR/USD News

GBP/USD surges towards 1.2600 ahead of BOE’s Bailey

GBP/USD surges towards 1.2600 ahead of BOE’s Bailey

GBP/USD is extending gains towards 1.2600 amid broad US dollar weakness and mixed market sentiment. The pair remains firmer around a fortnight's high, as British policymakers sound hopeful of overcoming the Brexit and inflation-led economic woes. Bailey's speech awaited.

GBP/USD News

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

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

Gold kicked off the new week on a positive note and build on its recent goodish rebound from the $1,786 region, or the lowest level since late January touched last Monday. The XAUUSD climbed to a nearly two-week high, around the $1,863 zone in the last hour.

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