Sterling Pound Latest: GBP/USD Poised to Drop Further, FTSE Gain

GBP PRICE ANALYSIS & NEWS

  • GBP/USD fell through the trend line key support yesterday and currently faces a further plunge to a 200-day MA at 1.2655. If this fall continues, extra weakness is expected.
  • The UK announced further restrictions on restaurant and pub-opening periods on Tuesday after the reported rise of coronavirus cases in September and warned that these measures can last for 6 months.
  • The FTSE is gaining from the GBP weakness

GBP/USD STILL HEADING LOWER

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The GBP/USD continues to weaken on extra concerns regarding the lackluster recovery of the economy across the globe, spurring more risk repulsion in the stock markets and further lifting the haven-associated USD to 2 months high as indicated by the US Dollar index.

GBP/USD Chart

British-Pound-GBP-Latest-GBP/USD

The support level, which broke Tuesday, was a major trendline that connected the most recent daily lows. Today, a drop to the new 200-day MA (Moving Average) at 1.2655 is quite amazing, and if this breaks then there is little extra support before the mid-July highs as Silver and Gold Weak on Stalled Stimulus Talks, US Dollar Resurgence.

The British Pound traders have badly taken the news of new curbs to prevent the second wave of coronavirus infections in the United Kingdom, and the subsequent weakness in the pair has helped to lift the FTSE index for the biggest Britain listed stocks, most of which have offshore earnings and as a result, benefit from the weak sterling pound when these earnings get repatriated to the United Kingdom.

FTSE 100 Chart

British-Pound-GBP-Latest-GBPUSD-Will-Likely-Fall-Further-FTSE-Up

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