British Pound gets pressured by COVID-19

British Pound gets pressured by COVID-19

2021-07-20 • Updated

What is happening?

The British pound lost his positions comparing to the US dollar, Euro, and other haven assets at the beginning of this week, because of the global markets sale. Investors realized that the pandemic is entering the next stage of the virus so-called Covid Delta. GBP dropped on the same day the country saw all restrictions eased. Investors are concerned about the future of the UK, despite the fact it is one of the most inoculated countries. These facts dropped the Pound-to-Dollar to the lowest level since February.

The British Pound dropped hard comparing to the haven currencies. It trades better against the basket of currencies, such as the Australian, New Zealand, and Canadian Dollars as well as Emerging Market currencies. This is because these so-called commodity currencies and high-yielding currencies tend to display greater sensitivity to the sentiment of investors.

In this way, the perspective of global currencies depends on how long investors are going to concern about the Covid strain.

Technical analyses

GBPUSD Daily chart

GBPUSDDaily.png

On the daily chart GBPUSD, the price broke through the 200-day moving average line. The next target is the support level at $1.34, which is the 38.2 Fibonacci level. In case the price breaks this level, it will drop to $1.315, which is the crosspoint of 100 and 200 weakly moving averages.

GBPAUDH4.png

The GBPAUD is trading in the rising channel. At the moment the price is testing the 50-period moving average. If the price breaks this support, it will drop to $1.85, $ 1.844 support lines. On the contrary, if it stays above the bottom line of the channel it will raise to the $1.866.

Similar

Euro May Start a Rally
Euro May Start a Rally

On October 28 European Central Bank held a press conference. Inflation has hit Europe and now the time has come for more profound steps in the fight with the post-pandemic economy. What should we know to trade these events?

The GBP setups ahead of CPI
The GBP setups ahead of CPI

The performance of the British pound against other majors has grabbed a lot of attention during the last couple of weeks.

Latest news

Virgin galactic: Buy When Everybody Sell
Virgin galactic: Buy When Everybody Sell

Latest news On September 29, Virgin Galactic announced that the Federal Aviation Administration has approved launches resume after an investigation about why its spaceship veered off course while descending during a July flight with founder Richard…

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera