GBP/USD: Bears look to retake controls amid Brexit woes, vaccine hopes

• GBP/USD keeps a downside break of monthly support line, eyes further weakness.
• Hopes of regulatory approval to leading covid vaccines battle Brexit jitters.
• EU’s Barnier reaches London, UK PM Johnson is likely to be approached by the bloc’s leader.

GBP/USD trims monthly gains while declining in the last week to re-test 1.3300. The pair awaits the Asian session’s reaction to the latest news concerning Brexit and the covid vaccine on early Monday. Although broad US dollar weakness and hopes concerning the coronavirus (COVID-19) vaccine have mainly propelled the Cable during November, bulls are turning cautious off-late as Brexit uncertainty weighs.

Pfizer, AstraZeneca gains UK’s back-up, Brexit still in limbo…

During the weekend the Financial Times (FT) came out with the news suggesting that the UK’s medical regulator, the Medicines and Healthcare Products Regulatory Agency (MHRA), is set to approve Pfizer-BioNTech coronavirus vaccine from December 7. The news follows the previous chatters that the British government is pushing MHRA to approve AstraZeneca’s covid vaccine. Elsewhere, the FT also claimed that the European Medicines Agency is set to consider next month whether to approve Pfizer/BioNTech vaccine and a rival candidate developed by Moderna.

Read: UK set to approve Pfizer-BioNTech coronavirus vaccine from December 7 – FT

Hence, vaccine hopes are on full stream at a time when the market needs it the most, especially when the UK’s economy is already fragile with two national lockdowns.

On the other hand, Brexit talks continue to dwindle. After much hype, the European Union’s (EU) Chief Negotiator Michel Barnier landed in London for a one-to-one talk. However, nothing strong has come out as both the parties blame each other for the deadlock. Fisheries have recently been the major hurdle. Chatters also crossed grapevine that talks could be held between European Commission President Ursula von der Leyen and UK PM Boris Johnson. However, nothing could be confirmed by the UK PM Johnson’s office.

Over the counter, US dollar weakness, mainly led by the market optimism concerning vaccine and Joe Biden’s election as the President, probe the GBP/USD bears.

Moving on, the pair traders will keep their eyes on the risk events, mainly concerning the Brexit and virus vaccine, for fresh impulse. Though, US dollar moves will also be the key to watch.

Technical analysis

A clear downside break of an ascending trend line from November 02, at 1.3385 now, directs GBP/USD bears toward October high near 1.3175. Alternatively, the monthly high near 1.3400 adds to the upside filters.