GBP/USD: Range may slip to 1.20-1.25 – Westpac

Extended COVID-19 lockdown and disputed reporting are increasing political and economic pressures as lockdowns extend. GBP/USD range may slip to 1.20-1.25, according to Westpac Institutional Bank.

Key quotes

“Increased scrutiny of UK COVID-19 reporting may be creating political pressures, but the lockdown is set to continue and will weigh on activity, increase welfare provisions and public debt.”

“Support within the recent GBP/USD 1.23-1.28 range is likely to be strained and might push the range down to 1.20-1.25 until some clarity appears over a potential end to the lockdown.”