- 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
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.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.