GBP/USD treads water below 1.3050 amid coronavirus-led risk-aversion


  • GBP/USD in bearish consolidation phase amid risk-off mood.
  • Coronavirus fears mount, UK’s new deaths highest since May.
  • Brexit and virus updates in focus ahead of US macro news.

GBP/USD looks to extend its downside consolidation phase below 1.3050 into the European open, as the US dollar clings onto the overnight gains amid broad risk-aversion.

With the major European economies considering nationwide lockdowns amid the relentless surge in coronavirus cases, the sentiment on the global markets remains tepid. The risk-off mood buoys the demand for the US dollar as a safe-haven at the expense of the risk assets such as the British pound.

The UK virus situation is no better, with the Kingdom having reported that the highest number of new deaths since May at 367 on Tuesday while new infections rose by 22,885.  The northern English town of Warrington moved into the highest level of coronavirus restrictions since Tuesday.

On the Brexit front, the EU’s Chief Brexit Negotiator Michel Barnier resumed talks with his British counterpart David Frost in London on Tuesday. Markets remain hopeful of a likely Brexit breakthrough, keeping the cable’s downside in check.

In absence of first-tier macro events from the UK docket, the focus will remain on the global virus statistics, Brexit updates and US data for fresh trading impetus.

GBP/USD technical levels

Immediate support is placed at 1.3006/09 (10 and 50-DMA), below which the 20-DMA at 1.2984 would come into play. To the upside, the bulls are testing the 5-DMA barrier at 1.3046. The next critical resistance awaits at 1.3081 (daily classic R1).

GBP/USD additional levels

GBP/USD

Overview
Today last price 1.3038
Today Daily Change -0.0008
Today Daily Change % -0.06
Today daily open 1.3045
 
Trends
Daily SMA20 1.2979
Daily SMA50 1.3009
Daily SMA100 1.2866
Daily SMA200 1.271
 
Levels
Previous Daily High 1.308
Previous Daily Low 1.3001
Previous Weekly High 1.3177
Previous Weekly Low 1.2895
Previous Monthly High 1.3482
Previous Monthly Low 1.2676
Daily Fibonacci 38.2% 1.305
Daily Fibonacci 61.8% 1.3031
Daily Pivot Point S1 1.3004
Daily Pivot Point S2 1.2963
Daily Pivot Point S3 1.2926
Daily Pivot Point R1 1.3083
Daily Pivot Point R2 1.3121
Daily Pivot Point R3 1.3162

 

 

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