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  • GBP/USD pair is struggling to build on last week’s gains.
  • UK PM Johnson is expected to announce new coronavirus-related restrictions.
  • US Dollar Index posts modest daily gains above 93.20.

The GBP/USD pair gained more than pips last week but struggled to preserve its bullish momentum on Monday. After rising above 1.3050 in the early trading hours of the European session, the pair reversed its course and was last seen losing 0.22% on a daily basis at 1.3017.

GBP weakens as market mood sours

Earlier in the day, British Culture Secretary Oliver Dowden announced that Prime Minister Boris Johnson is expected to announce new coronavirus-related restriction measures later on Monday. This development seems to be making it difficult for the GBP to gather strength against its rivals. Reflecting the cautious market mood, the UK’s FTSE 100 Index is trading flat on the day.

On the other hand, the US Dollar Index is staging a technical correction following last week’s slump and is currently gaining 0.17% on the day at 93.22. There won’t be any significant macroeconomic data releases from the US on Monday and Wall Street will be closed due to Columbus Day holiday.

Meanwhile, investors are likely to keep a close eye on fresh developments surrounding Brexit talks ahead of the October 15 deadline.

Technical levels to watch for