The GBP/USD currency pair failed to extend its previous day gains and dropped from the near 2-weeks high to 1.2320, mainly due to broad-based US dollar strength in the wake of risk-off market sentiment as tensions between the US-China are getting worse day by day. Whereas, the buyers failed to cheer the latest optimism about drug treatment for famous coronavirus (COVID-19). The GBP/USD is trading at 1.2323 and consolidating in the range between 1.2310 and 1.2348.
The reasons for the currency pair’s bearish sentiment could also be attributed to the latest allegations against the Tories about ignoring the lockdown guidance and distributing the virus funds to their own areas instead of supporting the more inferior parts of England, which eventually weighed on the GBP and contributed to its daily losses.
On the positive side, the currency pair’s previous bullish sentiment was bolstered by optimism about the usage of the famous Remdesivir drug for coronavirus patients. In the meantime, the report came that the drug appears to shorten recovery time for people with the virus was being made available on the National Health Services (NHS).
It should also be noted that the Remdesivir is an anti-viral medicine that was used against Ebola, and UK regulators have said that there was enough evidence to approve the use of this drug in selected COVID-19 patients.
The GBP/USD prices traded sharply bullish soaring from 1.2200 level to place a high around 1.2360 level. The resistance level of 1.2360 is extended by an upward channel, which can be seen on the 4-hour timeframe. The GBP/USD’s support is likely to be found around 1.2289 and 1.2165. Consider taking buying trades over 1.2292 and selling below the same level today.
Entry Price – Sell 1.23018
Stop Loss – 1.23468
Take Profit – 1.22518
Risk to Reward – 1.11
Profit & Loss Per Standard Lot = -$450/ +$500
Profit & Loss Per Micro Lot = -$45/ +$500