Expect Pound to Fall based on Pressure from COVID & DXY

Short

British Pound / U.S. Dollar (OANDA:GBPUSD)

OANDA:GBPUSD British Pound / U.S. Dollar

trendanalysis indicator gu uk dxy

After the Tuesday trading session, GU clearly rejected the 1.3000 area. It is a psychological level for the pair and has been trading in this region for several weeks.

The UK has been slammed into lockdown and with EU talks faltering we believe the pair has the potential to fall significantly. Based on the previous uptrend hitting the upper Bollinger band, we expect a downtrend to continue to form.

This is an opinion, not financial advice.

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