- GBP/USD was under pressure for a second consecutive session on Monday..
- Fears of tighter lockdown restrictions amid rising coronavirus cases dragged on the Pound.
- Equity markets plunged boosting the safe-haven USD, supporting the GBP/USD decline
The GBP/USD continued to fall following the rejection of the key 1.3000 psychological level last week.
The pair saw some aggressive selling in the early European session. Reports that the UK could be heading towards another two week national lockdown amid a resurgence in covid cases hit demand for sterling. Covid fears overshadowed EU Commission President Ursula von der Leyen’s supportive comments last Thursday that a trade deal between the UK and EU was still a possibility.
Second wave covid fears hit global risk sentiment, as seen in the selloff in equity indices and investors seeking out the US Dollar’s safe haven properties, pulling on GBP/USD. The lack of additional US stimulus, which could slow the US recovery doesn’t appear to be affecting buyers of the US Dollar.
There is no high impacting data due from either the US or the UK, meaning sentiment will continue to drive trading.Looking ahead a scheduled speech by the Federal Reserve Chair Jerome Powell could provide some meaningful technical opportunities.
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