He GBP/USD Monday’s Asian session began at 1.3058, the daily high, but subsequently lost ground, falling below 1.3000 to a three-day low of 1.2993. In the last two hours, the pair has reversed the decline, rebounding towards 1.3045.
The crossing was victim in the first hours of the week of the weather of risk aversion that reigns in the markets due to several factors: the increase in cases of coronavirus in Europe and the United Kingdom, the uncertainty due to the Brexit negotiations and the stagnation in the approval of the fiscal stimulus package in the United States.
With the pair trading at the time of writing above 1.3042, 0.05% above its opening price, traders will be very on the lookout today for any statement on the UK-European Union negotiations, as well as any updates to the figures. of Covid. The United States will release new home sales data for September and the Chicago Fed National Activity Index for the same month.
In case of further falls, the first support appears at 1.2911, the low of October 20, followed by 1.2863, the bottom of October 14 and 16.
On the upside, if the barrier of 1.3100 is exceeded, the initial resistance will be at 1.3122, the top of October 23, followed by 1.3176, the highest of October 21 and the last seven weeks.
Credits: Forex Street