Overall, GBP/USD is trending upwards. Recently, GBP/USD trended into the support zone of 1.30400.
Last Friday, the UK and Japan formally signed a free trade agreement. Also, in an effort to aid the EU in striking a trade deal with the UK, French President Emmanuel Macron is willing to compromise France’s fishing industry with a smaller fishing quota.
The UK flash PMI data released last Friday indicated a slowdown in business activities especially in the services sector due to tighter COVID-19 restrictions across the hospitality sector and the impact of local lockdowns on general consumer spending.
Currently, GBP/USD is testing the support zone of 1.30400 and the next resistance zone is at 1.32200. Look for buying opportunities of GBP/USD if it bounces off the support zone of 1.30400.