- GBP / USD quickly returned above 1.3300 and is now approaching 1.3400.
- The dollar is weak as stocks rise.
- Uncertainty continues due to Brexit and more restrictions due to coronavirus.
He GBP / USD rallied over 80 pips from the day’s lows and just climbed to 1.3383, marking a new high for the day, in the preview of the American session. It previously hit the lowest level since Friday at 1.3278, before rebounding.
The rebound was driven by some weakness in the dollar and the (modest) appetite for risk in the markets. The dollar index is falling and is trading just below 90.50.
The rally in stocks is another supportive factor for GBP / USD. The expectation for the start of vaccination against the coronavirus, together with the possibility of new fiscal stimuli in the US Limiting optimism is the non-resolution of Brexit and the increases in coronavirus cases in the northern hemisphere.
Looking ahead to the next few hours, the key will be in the possible news about Brexit, to which are added the data from the US, where the industrial production for November and the manufacturing Empire stand out. The Fed will begin the two-day meeting of the monetary policy committee.
Technical levels
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