Listen to the latest market mood for the GBPUSD pair.
Weak GBP, Strong USD
The GBPUSD is sitting on some pretty heavy support on top of its 100 and 200 daily moving average. The uphill battle for the GBP is becoming stronger with increasing UK restrictions to slow down COVID-19. The USD is helping GBPUSD falls as it is also finding strength from a combination of general risk aversion and position trimming into quarter end.
With rising COVID-19 cases, job losses expected at the end of the furlough scheme, negative rates gently hinted at by the Bank of England, and potential Brexit calamity expect sellers on the GBPUSD pair.
Therefore, expect GBPUSD sellers at market.
- If risk sentiment improves today this will negate USD strength and invalidate this outlook.
- If a Brexit deal is done that will result in GBP strength.