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GBP Continues to Sink on COVID Spread Reaction, Ongoing Brexit Talks

GBP
MNI (London)
  • Continued pressure on GBP sees GBP/USD break under $1.3300 (low $1.3279).
  • Move exposes $1.3250(76.4% 1.3135-1.3624) with the Dec10 low close behind at $1.3246.
  • EU parliament's Sunday midnight 'deadline' passed with no agreement (talks continue but outlook remains gloomy) and added to by countries closing borders with the UK due to the more virulent strain of COVID-19 spreading in SE England continue to provide a bearish tone for GBP.
  • EUR/GBP seen approaching the topside of its 1.0% 10-dma envelope, currently at Gbp0.9172, and moving in line with its technical resistance here (76.4% 0.9230-0.8983).
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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