GBP/USD

Updated: 14 hours ago
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The British pound continues its upward trek to the start of this new week and is now focused on the 1.2425 resistance.

Apart from Trump, the focus remains on Brexit talks, along with the coronavirus developments.

Starting this Monday, the U.K. will start easing restrictions despite two of the government’s scientific advisers believe it’s too soon as infections continue to surge.

John Edmunds and Jeremy Farrar of the Scientific Advisory Group for Emergencies warned that the U.K. could see between 40 and 80 ongoing deaths a day even without a second wave.

Looking to the Brexit saga, the last round of talks between the U.K. and the EU are due to take place this week.

The transition period (divorce) is closing in on the December departure, and so far, there was no progress in talks about the post-Brexit relationship between the two economies.

Meanwhile, over the weekend, EU’s chief negotiator Barnier said U.K. PM Johnson was failing to honour the withdrawal agreement signed last year and warned there would not be an “agreement at any cost.”

Looking to the economic data front, Monday gets the Final U.K. May Manufacturing PMI, forecast seen at 40.7 from 40.6.

At present, the view remains neutral in the short-term. However, a break of 1.2425 would expect an extension to 1.2480-85, reassess from there.

Levels 1st 2nd 3rd
Resistance 1.2445 1.2480-85 1.2555-65
Support 1.2345 minor 1.2280 1.2010-15
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