- GBP/USD witnessed aggressive selling on Monday in reaction to new COVID-19 lockdown in the UK.
- The global risk sentiment benefitted the safe-haven USD and added to the selling bias.
GBP/USD is trading below 1.33, off the lows but down over 250 pips in the earlier sessions as the UK faces supply chain issues amid travel bans imposed to stop the spread of the new covid strain.
The GBP/USD pair gained a part of its heavy intraday losses. It has now recovered nearly 100 pips from the 1.3200 level, still down around 1.80% for the day.
The pair opened with a bearish gap and witnessed some aggressive selling-through on the first day of a new trading week.
Immediate upside pressure should be maintained while the cable remains above
A month-old ascending trend-line support awaits at 1.3180, a swing low from the previous week, and the monthly low awaits at 1.3135.
Resistance awaits at the 1.3300 round figure mark, which supported cable on last week's market open with an upward gap. It is followed by 1.3400, a high seen in November. Then, it may grow above 1.3500.
