22.09 - GBP/USD snaps two-day losing streak
- by George Solotarov
GBP/USD bounces off 1.2798 to currently around 1.2820 while heading into the London open on Tuesday. Unlike other major currency pairs that mostly portrayed US dollar gains, the Cable marked the coronavirus (COVID-19) woes at home to please the sellers the previous day. With the virus-led deaths reaching to April/May levels, authorities in the UK and Europe are pushed to announce restrictions over activities. While local lockdowns have been in fashion off-late, the latest announcement of time-limit to stay in the English pubs and restaurants has been the most severe recently.
Against this backdrop, S&P 500 Futures decline 0.10% while the losses in Asia-Pacific, except Japan, are magnified as US-China tension joins the COVID-19 burden on the risk sentiment. Unless breaking a descending trend line from September 01, currently around 1.2930, buyers are less likely to take entries. As a result, a horizontal area comprising July 21 top and the monthly low, between 1.2762 and 1.2767, is actually in the spotlight.