The British Pound remained the weakest among the major currencies, failing to gain ground on Friday with a close at 1.2568, 0.14% lower than its Thursday close at 1.2580. Traders see the prospect for negative rates growing after recent comments from Bank of England Governor Bailey that “interest rates will stay very low”. Brexit talks have yet to gain any meaningful progress. The UK’s economic reopening amidst surging coronavirus cases around the globe have markets concerned that Britain may experience its own surge in the virus infections.
GBP/USD has immediate resistance at 1.2600 followed by 1.2640. Immediate support can be found at 1.2550 followed by 1.2510. Look for Sterling to drift lower in a likely range today of 1.2510-1.2610. Prefer to sell on any rallies to 1.2600.
