pound-sterling-gbp-coin - GBP
  • GBP/USD trades around 1.29, off the low.
  • Fears are rising of a nationwide lockdown to stem the spread of covid in the UK.
  • Brexit talks are also eyed.

GBP/USD advanced to a daily high of 1.2985-90 before quickly retreating.

Following an early dip to sub-1.2900 levels, the pair witnessed some short-covering move and has now recovered the previous day’s negative move to two-week tops. 

With no negative Brexit news and a weaker US dollar helped to drive GBP/USD higher.

The US Dollar eased back paring some recent strong gains to four-week tops. The greenback was under pressure as jitters grow ahead of the US Presidential elections. However, fears over the economic impact from new COVID-19 restrictions and weaker sentiment surrounding the stock markets helped limit the USD losses

The uptick boosted GBP/USD which snapped a two day losing streak. Although this rally could too be capped by some factors. Ongoing Brexit uncertainties, fears of stricter lockdown in the UK could limit the upside in GBP/USD.

Upbeat US economic data failed to impress the USD bulls or drive GBP/USD . Later today,Chicago PMI and Revised Michigan Consumer Sentiment could attract some attention.in addition to US politics.