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GBP/USD Comes Under Renewed Pressure On Mutant Coronavirus, Fisheries Talks

GBPUSD
GBPUSD

The GBPUSD remains under pressure as the mutant coronavirus continues to provide a worrying reminder to the markets that the worst of the pandemic is not over yet. 

However, the GBPUSD got a reprieve late yesterday from some hopeful statements out of the post-Brexit trade talks. There were feelers that the EU had provided some concessions on the fishing rights. However, there has been no official confirmation of this development. Rather, there were reports that the EU had rejected the UK’s latest proposals on the controversial fisheries issue, and the pair came under renewed selling pressure on Tuesday. 

The GBP/USD is down 0.24%, off intraday lows at 1.33615 to trade at 1.34261 at the time of writing. 

Technical Levels to Watch

The lower edge of the channel proved to be a solid support, as it provided the fulcrum for yesterday’s 300-pip recovery move from session lows. Sellers forced prices down on Tuesday morning in an attempt to break down the 1.33951 support, but this attempt has been rejected by buyers. 

If this support eventually gives way, the GBP/USD may attempt another run to the channel’s lower border, taking 1.33193 and 1.32663 with it. 1.31019 and 1.30554 are only attainable if the channel’s lower edge gives in to selling pressure. 

On the flip side, a break of 1.34765 allows 1.35134 to come into focus, with the 9 May 2018 high at 1.36117 looking like a target that is only attainable if a Brexit deal is reached. 

GBP/USD Daily Chart