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: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.