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22.09 - GBP/USD snaps two-day losing streak

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22.09 - GBP/USD snaps two-day losing streakGBP/USD bounces off 1.2798 to currently around 1.2820 while heading into the London open on Tuesday. Unlike other major currency pairs that mostly portrayed US dollar gains, the Cable marked the coronavirus (COVID-19) woes at home to please the sellers the previous day. With the virus-led deaths reaching to April/May levels, authorities in the UK and Europe are pushed to announce restrictions over activities. While local lockdowns have been in fashion off-late, the latest announcement of time-limit to stay in the English pubs and restaurants has been the most severe recently.

Against this backdrop, S&P 500 Futures decline 0.10% while the losses in Asia-Pacific, except Japan, are magnified as US-China tension joins the COVID-19 burden on the risk sentiment. Unless breaking a descending trend line from September 01, currently around 1.2930, buyers are less likely to take entries. As a result, a horizontal area comprising July 21 top and the monthly low, between 1.2762 and 1.2767, is actually in the spotlight.

 

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I feel like its going to burst soon
The address by PM Boris Johnson was clearly unsettling to the markets - new restrictions to combat a resurgence of the virus in UK have been implemented - possibly for the 6 months. This latest update gives us a clue just how bad the virus situation is in the UK. Coupled with the uncertainties over the Brexit deal, looks like the bears have conquered the scene when it comes to the Pound.
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but I am still losing in my stocks...
GBP/USD pair moved into the positive territory and shot an intraday high level of 1.2867. The uptick was further supported by a softer tone surrounding the US dollar amid a modest recovery in the US equity markets.
In the absence of any major market-moving economic releases, the incoming Brexit headlines will influence the pound and produce some short-term trading opportunities.

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