Sterling and FTSE 100 – News, Prices and Analysis:
GBP/USD Heavy as Coronavirus Continues to Weigh
The UK may in lockdown for a lot longer than originally thought, according to the country’s deputy chief medical officer. Dr Jenny Harries warned over the weekend that the life in the UK may not return to normal for up to six months, while restrictions will most likely be eased over the next three to six months, a longer timeframe than originally expected. The UK currently has 19,552 confirmed cases of coronavirus with 1,228 fatalities.
GBP/USD traded as high as 1.2466 in early turnover before giving back over 100 pips as sellers took early control of the pair. Cable rallied over six big figures on Thursday and Friday last week on little news and with the Coronavirus continuing to spread, and the number of fatalities increasing, there seems little reason for the pair to break above last Friday’s 1.2488 high. With volatility remaining high, the 200-dma at 1.2225 may be tested in the short-term.
GBP/USD Daily Price Chart (October 2019 – March 30, 2020)
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FTSE 100 Rebound Remains Under Threat
The FTSE 100 is struggling to stay in positive territory this morning despite Sterling’s weakness with the overall chart set-up highlighting bearish sentiment. The index is back below the 20-dma and the 23.6% Fibonacci retracement level of 5,464, with the double-top made last Thursday and Friday at 5,826 capping any short-term upside. Last Tuesday’s low around 5,050 and the 5,000 big figure support remain targets and with volatility still at extreme levels, these targets may be tested soon.
FTSE 100 Daily Price Chart (June 2019 – March 30, 2020)
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