Sterling falls on Covid-19 fears.
Sterling falling today primarily under the effect of the strongly bearish sterling sentiment as investors turned more cautious amid fears around the spread of Covid-19 variants in Britain. Traders are concerned that a Covid-19 variant, first found in India, which is currently forming the hotspots across UK could delay the next phase of the reopening on June 21 – which should halt the economic recovery in United Kingdom. These fears triggered the wide scale take-profit run across all of the GBG-linked currency pairs. The earlier failure to break conclusively above the powerful long term resistance level 1.4235 also added to the bearish pressure on this currency pair.
Next support to watch – 1.4085
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