Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

GBP/USD Video 10.08.20.


Republicans And Democrats Fail To Negotiate A New Coronavirus Aid Package

GBP/USD trades near 1.3050 while the U.S. dollar is flat against a broad basket of currencies as the U.S. lawmakers failed to negotiate a new U.S. coronavirus aid package over the weekend.

U.S. Republicans and Democrats failed to reach consensus on the new coronavirus aid bill, and the U.S. President Donald Trump had to use executive orders to extend some benefits.

The new orders will provide unemployment benefits of $400 per week, down from the previous $600 per week. This measure should support unemployed workers while giving them an incentive to get back to work.

In addition, Trump’s executive orders suspend the collection of payroll taxes and stop evictions from rental housing that depends on federal financial backing.

The U.S. economy clearly needs more stimulus so talks between Republicans and Democrats will continue. However, the gap between their negotiating positions is very wide so it is not clear when the consensus will be reached.

Meanwhile, U.S. – China tensions continue to increase on a daily basis. The U.S. has decided to audit all foreign firms listed at American exchanges from 2022, a move aimed at Chinese companies whose stocks trade on U.S. exchanges.

The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has failed to settle above 93.5. In case U.S. Dollar Index manages to get below the 93 level, GBP/USD will have good chances to test the recent highs near 1.3200.

Technical Analysis

GBP/USD has failed to settle above the nearest resistance level at 1.3110 and continues to trade near 1.3050.

The nearest support level for GBP/USD has emerged at 1.3010. In case GBP/USD settles below this level, it will head towards the next support level at 1.2980.

On the upside, a move above the resistance at 1.3110 will likely lead to increased upside momentum which could push GBP/USD closer to the recent highs at 1.3200.

RSI has left the overbought territory so GBP/USD has plenty of room to gain momentum in case the right catalysts emerge.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.