GBP/USD: Buying interest seems quite limited

A weaker dollar maintains GBP/USD afloat this Tuesday, with the pair trading around the 1.3500 level. The post-Brexit deal is under scrutiny amid multiple unsolved issues. Meanwhile, the UK reported over 40K new coronavirus contagions in one day, a record high, weighing on the pound, FXStreet’s Chief Analyst Valeria Bednarik reports.

See: Brexit to continue reverberating in years to come – Danske Bank

Key quotes

“The sterling lost momentum despite the UK and the EU were able to clinch a post-Brexit deal, as investors scrutinize the document, which shows that multiple issues remain unsolved. The market’s reaction is limited by thin holidays trading in a shortened week with an empty macroeconomic calendar.”

“The latest coronavirus developments in the UK are also capping sterling. The country reported over 40K new COVID-19 cases in one day this week, the largest increase on record, despite strict lockdown measures are being applied throughout the kingdom.”

“The GBP/USD pair is trading higher in range, but the near-term technical picture indicates that bullish intentions are few. In the 4-hour chart, a bullish 20 SMA offers dynamic resistance in the 1.3520 price zone, while the longer moving averages head nowhere below the current level.”