GBP/USD January 19th, 2021
The pound declined against on Monday as rising COVID-19 cases hurt global risk appetite. Global markets started the week “risk-off”, as escalating COVID-19 infections took precedence over optimism about vaccinations.
The pound was among the risk-sensitive currencies to fall, while the safe-haven dollar edged up slightly. The pound has fallen overall against the dollar so far this year but, after a no-deal Brexit was avoided via a last-minute deal at the end of 2020, analysts generally expect the pound to strengthen throughout 2021. Immediate resistance can be seen at 1.3549 (50%fib), an upside break can trigger rise towards 1.3613 (38.2%fib).On the downside, immediate support is seen at 1.3519 (21 EMA), a break below could take the pair towards 1.3494 (61.8 % fib).