GBP/USD drops to 1.2400 as Demand for USD Strengthens and Offset Brexit Optimism

GBP/USD went down 0.10% on a day with its drop to 1.2404. The pair currently struggles to keep the ongoing optimism on Brexit amid the expansive USD dollar demand supported by the market’s risk-off stance. However, a light schedule before the US meeting urges traders to scan the market concerning COVID-19 related updates for short-term direction.

Aside from the Brexit confidence, worldwide praise of the country’s COVID-19 battle and facilitation of the lockdown easing are some additional points supporting the pound currency. Besides, no cutoff time for the economic alliance talks between UK-US makes it progressively rewarding and attractive versus Japan’s six-week time limit.

On the other hand, the US warnings to impose tariffs on European products along with the rising number of COVID-19 cases burden the pair and market response.

Price Outlook

Investors may now wait for the UK’s response to the trade-negative threats from the US to monitor the pair’s short-term movement. Likewise significant will be the US updates regarding the pandemic and most recent information concerning the Jobless Claims.

Inability to cross 3-month-old support now resistance line, the pair is currently exchanging at around 1.24, carrying GBP/USD to an uptrend.

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