The pair is edging back today after falling yesterday by more than 1%. The pair declined after PM Boris Johnson announced new lockdown measures in England as the new strain of the virus continues to spread. The GBPUSD is trading at 1.3595 at the moment, which is marginally higher than yesterday’s low of 1.3540.
The UK has become the new center of the covid-19 pandemic in Europe, driven by the new strain of the virus. The number of new cases climbed by more than 50k yesterday, the highest number since April.
To reduce the spread, UK PM Boris Johnson announced that the country would move to a new national lockdown as the vaccinations continue. As such, these risks are putting the economy and public health services at a significant risk even as the country avoided a no-deal Brexit situation.
Later today, the pair is expected to react to the latest ISM manufacturing PMI from the US in the afternoon. Economists expect the data to show that the PMI declined to 56.6 in December. The pair will also react to the outcome of the Georgia Senate election.
Looking at the 4-hour chart, we see that the Cable dropped quickly yesterday after the new lockdown measures were unveiled.
We expect that the pair will continue rising today and possibly test the 1.3650 level. It will then decline and possibly below yesterday’s low of 1.3540.
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