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GBP / USD Falls After Third UK National Lockdown Announcement

Today, the British pound sterling is trying to recover from its first day of trading in 2021. Since the beginning of the day, the GBP / USD pair has risen in price by 0.25%, but the growth is mainly due to the depreciation of the dollar across the entire spectrum of the market. While the British pound sterling remains vulnerable in the face of high uncertainty about the prospects for economic development.

 

On Monday evening, Prime Minister Boris Johnson announced the introduction of a new (third in a row) national lockdown, at least until mid-February. This could seriously damage the UK economy, forcing the Bank of England to take new measures to ease monetary policy, which will inevitably lead to a weakening of the national currency.

 

The UK reported 58,784 new cases of the virus on Monday, up from 55,157 a day earlier. Many experts say that the number of cases will rise at least in the next two weeks, after the New Year and Christmas holidays. The mass vaccination program of the population cannot yet contain the topic of the spread of the disease.

 

A correctional wave is developing on the chart. Consider the level of 1.3630 as intraday resistance. The closest target for the decline is the level of 1.3525. In case of a breakdown, wait for the price at the level of 1.3480.

 

  • Resistance levels: 1.3630, 1.3700, 1.3800;

 

  • Support levels: 1.3525, 1.3480, 1.3410.

 

The main scenario is an increase to 1.3630 and a decline to 1.3525.

 

An alternative option is a decline to 1.3480 and an increase to 1.3630.

 

The current fundamental outlook is neutral. We consider longs from the level of 1.3480.

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