- GBP / USD finds new supply as the US dollar regains ground.
- The focus is on US macro news and sentiment around US equities.
Buying interest around the US dollar remains constant amid widespread risk aversion, pushing GBP / USD further towards the 1.3650 level.
The sell-off in major companies accelerates in the European session, as stocks fell nearly 1% on concerns about speculative trading seen in Wall Street stocks in recent days.
Furthermore, risk sentiment remains bitter amid the vaccine dispute between the UK and the European Union (EU). The delays in the production of the vaccines have caused a dispute between the United Kingdom, the EU and the pharmaceutical company over the sufficient supply of injections in the Old Continent.
Additionally, US pharmaceutical giant Novavax Inc. said its vaccine is only 49% effective against South Africa’s new strain of covid, compounding the market’s suffering.
Along with riskier assets like stocks, the pound took a hit while the safe-haven US dollar extended its rally after Thursday’s slide. The US dollar index earns 0.30% daily to trade around 90.75, at time of writing.
Markets are now looking forward to the US Core PCE Price Index and revised consumer sentiment data from the University of Michigan for new business incentives. Meanwhile, the covid and vaccine updates will also draw attention amid month-end flows and sentiment on Wall Street.
GBP / USD: Technical levels
The 4-hour chart shows that the bulls have faced rejection in the neighborhood of 1.3750 several times since Jan 21. That, along with the lower highs in the Relative Strength Index of the 4-hour chart, indicates a margin for a setback. The immediate support awaits at 1.37, which, if broken, would open the doors at 1.3610 (January 26 low), ”says Omkar Godbole, an analyst at FXStreet.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
