GBP/USD under pressure below 1.2600 amid risk-off mood

GBP/USD consolidates the downside amid risk-aversion.
Coronavirus fears offset UK fiscal stimulus optimism.
UK turns down EU coronavirus vaccine scheme.

Dhwani Mehta FXStreet

Following a steady decline in the overnight trade, GBP/USD looks to extend the downside consolidative mode below 1.2600 in early Europe and remains vulnerable amid broad risk-aversion.

The persistent surge in coronavirus cases in the US, concerns over the global economic rebound and Brexit uncertainty exert bearish pressure on the spot.

Further, the Telegraph report that Alok Sharma, the UK Business Secretary walked away from the European Union’s (EU) coronavirus vaccine scheme, adds to the downside in the pound.

The UK turned down the offer after failing to secure "sufficient assurance" that the Kingdom would receive the number of vaccines it needs on time.

The cable reverses the recent surge led by the UK fiscal stimulus announcement. “On Wednesday, Chancellor of the Exchequer Rishi Sunak laid out a detailed program including a job retention scheme and other means of boosting the economy,” as noted by FXStreet’s Chief Analyst, Valeria Bednarik.

In the day ahead, the risk-off market mood could likely continue to benefit the safe-haven US dollar and keep the major undermined. Traders will also watch out fresh Brexit headlines and US PPI data for fresh trading impetus.

GBP/USD technical levels

GBP/USD

Overview
Today last price	1.2586
Today Daily Change	-0.0020
Today Daily Change %	-0.16
Today daily open	1.2607

Trends
Daily SMA20	1.2479
Daily SMA50	1.243
Daily SMA100	1.2441
Daily SMA200	1.2698

Levels
Previous Daily High	1.267
Previous Daily Low	1.26
Previous Weekly High	1.253
Previous Weekly Low	1.2252
Previous Monthly High	1.2813
Previous Monthly Low	1.2252
Daily Fibonacci 38.2%	1.2627
Daily Fibonacci 61.8%	1.2643
Daily Pivot Point S1	1.2581
Daily Pivot Point S2	1.2556
Daily Pivot Point S3	1.2512
Daily Pivot Point R1	1.2651
Daily Pivot Point R2	1.2695
Daily Pivot Point R3	1.2721

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.