- GBP / USD extended the pullback after Friday’s peak, amid pound weakness.
- Uncertainty due to the advance of COVID-19 cases and risk aversion in markets play against GBP.
- Despite Friday’s drop, the pair is still in positive territory for the week.
GBP / USD is trading on Friday with a negative bias in the North American session preview and is at the day’s lows at 1.3280 / 85.
After a first rally to the 1.3335 / 40 region, GBP / USD witnessed some selling on Friday and extended the pullback from Thursday’s peak of the 1.3375 area, the December high. As investors looked beyond the surprise rise in interest rates from the Bank of England on Thursday, the worsening situation by the COVID-19 in the UK and a general decline in stocks turned out to be a negative factor for the pound.
It also adds that the dollar is recovering part of the ground it lost after the meeting of the Federal Reserve. The advance is being moderate for the moment, possibly due to the fact that the yields of the Treasury bonds do not register significant variations.
The intense week that included decisions by the Fed and the BoE, does not have big events for Friday, highlighting the exposure of Waller, governor of the Fed. The GBP / USD is on the way to close in positive the last full week of 2021.
Technical levels
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