Pound Sterling Price News and Forecast: GBP/USD remains depressed around one-week low

FXStreet Team FXStreet

GBP/USD: Covid risks digging in to daily support territory

GBP/USD has started out the week on the back foot as the price drops near to 0.5%. Cable has fallen from a high of 1.3862 and met a low of 1.3755 in Tokyo. The bears are in charge as investors fret over the rise of the delta variant in the UK and overseas, and GBP was poised for a weekly loss of 0.8%, its worst since mid-June.

In recent months, a variant of SARS-CoV-2, the virus that causes COVID-19, has been making headlines as it has spread across the world. The Covid delta variant has exploded in the UK and there are questions as to whether the lifting of lockdown rules in England from Monday is a good idea.

GBP/USD Price Analysis: On the back foot below 1.3800, focus on 14-week-old support line

GBP/USD sellers attack a one-week low of around 1.3760 amid a lacklustre Asian session on Monday. In doing so, the cable pair stays pressured for the third day in a row after failing to cross a downward sloping trend line from June 23.

Also backing the pair sellers could be the MACD line that teases the cross over the signal line, suggesting further weakness. However, an upward sloping support line from early April, around 1.3740, becomes the key support for GBP/USD bears to watch.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.