GBPUSD Forced To 1.3000 In The Middle Of Brexit And The Pandemic

GBPUSD Forced To 1.3000 In The Middle Of Brexit And The Pandemic
  • GBPUSD tries to heal in the risk-off atmosphere due to Friday’s lows.
  • Brexit makes for a risky environment. The United Kingdom has 23,000 new Covid-19 diagnoses.
  • Marketplaces are waiting for news of Brexit, the pandemic, and the USA stimulus.

GBPUSD will continue losing on Monday in a 3rd straight day rush under pressure from the downwards marketplace mood in the face of a steep rise in cases of Covid-19 over the world.

On Sunday, the UK had over 23K new cases, with the most virus infections in the NW, Yorkshire, Humber, and North East. In the meantime, EU countries like Spain, Italy, and France impose partial lock-ups and stringent limits to control the spread.

The investors hoped the USD would be a safe haven, knocking off the risk asset, the British pound, in the midst of the Covid-19 resurgence. Meanwhile, the elections are creating a growing uncertainty about the possible fiscal stimulus agreement in the States. The USD index went up 0.15 percent on the day, now recovering from a daily low of 92.70 to 92.91.

Alongside the pandemic fears, even with the resumption of the negotiations between the EU and UK the previous week, the cable continues to be undermined by Brexit confusion. The key point is still the fisheries’ subject. With French President Macron saying they will withdraw from this agreement if it means the “sacrifice” of French fishermen.

The next day will target Brexit, the pandemic, and stimulus developments because of a lack of important macro news globally. In the meantime, the situation will be in detail, followed by the worldwide marketplaces.

Technical rate

The instant support is 1.3007 (10 and 50-DMA), under which 20-DMA is placed at 1.2978. To the top, the level to beat for the positive rush is 1.3052. At 1.3069, the following critical resistance (5-DMA) waits.

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