GBPUSD under pressure on new national lockdown

The British pound touched $ 1.2855 during today's session, its weakest level since October 7th, after Prime Minister Boris Johnson announced a new one-month lockdown to start next Thursday after the number of total confirmed cases in the UK surpassed 1 million and the average number of new daily cases last week was 20,000. Senior cabinet minister Michael Gove said the one-month lockdown could be extended further as Britain struggles to contain a second wave of the COVID-19 pandemic, while finance minister Rishi Sunak said he is hopeful the lockdown will be lifted in December. On a more positive note, negotiators from UK and EU have reportedly moved closer to an agreement on fisheries.

GBPUSD - despite the initial negative reaction, pair managed to erase most of the early losses. Price bounced off the local support at 1.2855 and is currently testing 50 SMA (green line). Should buyers manage to break above it, then the upward move towards resistance at 1.30  may accelerate. However if sellers will manage to regain control and break below the aforementioned 1.2855 level, then the downward move could be extended to the 1.2754 handle. Source: xStation5

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