- GBP/USD remains under some heavy selling pressure for the third straight session.
- The prevailing risk-off mood benefitted the USD’s safe-haven status against the GBP.
- A sustained break below YTD lows should pave the way for further near-term weakness.
The selling pressure around the British pound picked up some additional pace in the last hour and dragged the GBP/USD pair to near two-week lows, below mid-1.2700s.
Following a brief consolidation through the Asian/early European session, the pair drifted into the negative territory for the third consecutive session and extended this week’s rejection slide from the 1.3200 round-figure mark.
Bears back in control
The downfall lacked any obvious fundamental catalyst and could be solely attributed to the ongoing rout in the global equity markets, which extended some support to the US dollar’s relative safe-haven status against its British counterpart.
Worries over the coronavirus outbreak intensified further after the World Health Organization declared the novel virus a global pandemic and the US President Donald Trump decided to suspend all travels from Europe for 30 days.
On the other hand, the GBP bulls seemed rather unimpressed by the UK government’s massive £30 billion coronavirus relief package on Wednesday and the Bank of England’s special funding facility to small/medium-sized businesses.
The pair has now dropped well within the striking distance of YTD lows set on February 28, which if broken would set the stage for the resumption of the prior/well-established bearish trend amid absent relevant market moving economic releases.
Technical levels to watch