GBP/USD Set For Short-Term Losses
The dollar lost some steam today after upbeat EU data boosted the euro and helped stoke hopes for a global economic recovery. Meanwhile, a spike in new COVID-19 cases in the US provided some support for the greenback. The British pound also found support, recovering somewhat after touching a three-month low against the euro yesterday and holding steady against the greenback near the $1.25 level, but we would expect the sterling to head lower again, at least on a short-term basis – which is why we sold GBPUSD today as the market could lose steam again right at the resistance area.
We sold at 1.2500 with SL at 1.2540 and TP at 1.2435.
Should the safe-haven USD continue to recover, we would also see more downside in the GBP/USD, while the seemingly stagnant EU / UK trade talks fail to provide any support for the pound.