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.
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