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Technical outlook: GBPUSD Plunges On New Virus Strain

Technical outlook: GBPUSD Plunges On New Virus Strain

Our currency spotlight shines on the British Pound which has been battered and bruised across the board.

Technical outlook: GBPUSD Plunges On New Virus Strain

Over the last 24 hours, it has weakened against every single G10, Asian, Latin American, and most emerging market currencies. The primary culprits behind the Pound’s gut-wrenching selloff revolved around the UK missing the European parliament’s deadline to ratify an agreement and a fast-spreading new coronavirus strain. On top of this, a wave of countries have closed their borders to Britain amid tougher lockdown restrictions to fight the new strain of COVID-19. With just over one week to go until the Brexit transition period ends, the outlook for Sterling does not look pretty and this continues to be reflected in most Pound crosses.

GBPUSD slides through support levels

The title says it all. Bears were smoking hot today, cutting through support like a hot knife through butter. A weekly close below the 1.3300 level could signal a selloff towards 1.3100 and 1.3000, respectively.

GBPUSD slides through support levels

Taking a look at the daily timeframe, bulls have an opportunity to bounce back if 1.3300 proves to be reliable support. A rebound from this point could trigger a move higher towards 1.3440 and 1.3608.

GBPUSD slides through support levels

EURGBP trapped in weekly range

A broadly weaker Pound has propelled the EURGBP above the 0.9200 level. Should the Pound depreciate further on Brexit related uncertainty, this may send the EURGBP towards 0.9300. Alternatively, a move below 0.9100 could spark a decline towards 0.8890.

EURGBP trapped in weekly range

GBPJPY challenges 137.50 support

After falling over 200 pips, the GBPJPY has found itself back above the 137.50 support level. Regardless of the technical rebound, prices remain bearish on the daily charts and may extend losses in the week ahead. Bears need a solid daily close below 137.50 to encourage a move towards 135.70.

GBPJPY challenges 137.50 support

GBPAUD eyes 1.7300

Prices are looking mighty bearish on the weekly charts with bears eyeing the 1.7300 support level. If 1.7650 proves to be reliable resistance, bears could receive enough inspiration to target 1.7300.

GBPAUD eyes 1.7300

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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