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GBP/USD has surged above 1.33 after bouncing from the 55-day ma at 1.3137. Nevertheless, the pair still looks at the five-month uptrend at 1.3056 which remains key to sustain the upside pressure. GBP/USD sold off on Friday following the failure at tough resistance at the 1.3500/1.3540 recent high and December 2019 high. It has bounced from the 55-day moving average at 1.3137, but this has not been enough to restore the up move and, for now, the five-month uptrend at 1.3056 remains pivotal. EUR/USD’s upside looks elusive despite the technical breakout. A falling wedge bullish break confirmed on the hourly chart. Bearish crossovers, bullish RSI put EUR bulls in limbo. The dollar headed lower in early European trade Monday, as traders deserted the safe haven on hopes that Congress will finally agree a fiscal stimulus package ahead of the Federal Reserve's policy meeting. The dollar index was down 0.4% at 90.562, trading near a two-and-a-half year low. USD/JPY fell 0.1% to 103.98, EUR/USD rose 0.4% to 1.2155, while the risk-sensitive AUD/USD was up 0.4% at 0.7564.

GBP/USD is again backing away from tough resistance at the 1.3500/1.3540 recent high and December 2019 high. We are alert to a set back from here near-term. Nearby support is offered by the 55-day moving average at 1.3129 and also by 1.3050, the five-month uptrend and for now, while above here the market remains bid. EUR/USD came under fresh selling pressure on the renewed virus concerns and ECB policymaker Villeroy’s Galhau’s and comments on the euro exchange rate. The spot was last seen trading at 1.2116, losing 0.14% on the day. The dollar weakened in early European trade Friday, with optimism of a recovery from the Covid-19 pandemic weighing on this safe haven, while the pound weakened on growing Brexit uncertainty. The dollar index down 0.1% at 90.797, trading near a two-and-a-half year low. USD/JPY fell 0.2% to 104.03, while the risk-sensitive AUD/USD was up 0.4% at 0.7558.

GBP/USD is on the back foot after the Brussels' Brexit dinner failed to yield a breakthrough. Ongoing talks, now set to extend through Sunday, overshadow US fiscal stimulus and virus developments. Failing to reach a deal three weeks before the transition expires is an adverse development for the pound. Contingency plans for a no-deal exit are likely to grab the headlines, further weighing on sentiment. The fact that investors will be unable to react to a Sunday statement may cause some to take bets off the table. Fear of another deadlock could prompt a run against the pound. Republicans and Democrats seem to coalesce around the framework – $900 billion – but not about the details. Nevertheless, there seems to be more optimism in Washington than in Brussels. GBP/USD extends losses towards 1.3300. The spot was last seen trading at 1.3316, down 0.60% on the day. EUR/USD Price Analysis: Bounces-off 200-HMA to regain 1.2100 ahead of ECB. The dollar edged lower in early European trade Thursday, with traders keeping a wary eye on the ongoing negotiations over Brexit trade in Europe and a Covid-19 relief package in the U.S., ahead of key central bank meetings. The dollar index was down 0.1% at 91.050, only slightly above the recent 2 1/2-year low of 90.471. USD/JPY rose 0.3% to 104.50, while the risk-sensitive AUD/USD was up 0.2% at 0.7461.

The GBP/USD pair maintained its bid tone through the early European session and was last seen hovering just below daily tops, around the 1.3380 region. The pair managed to regain some positive traction during the first half of the trading action on Wednesday and for now, has snapped three consecutive days of the losing streak. The uptick was supported by the emergence of some fresh selling around the US dollar and seemed rather unaffected by persistent Brexit uncertainties. Positive news on COVID-19 vaccine approvals and efforts to launch more fiscal stimulus to support the US economy boosted investors' confidence. This was evident from a positive trading sentiment across the global equity markets, which snapped demand for the traditional safe-haven greenback and remained supportive of the intraday positive move. This makes it prudent to wait for some strong follow-through buying before confirming that the GBP/USD pair has formed a strong base ahead of the 1.3200 mark. EUR/USD has completed a much-needed correction and may be ready to rocket again after moving too high. The world’s most popular currency pair is ready to attack 1.22 as stimulus, Brexit and technicals look promising. The latest move higher is likely the result of dollar weakness fuelled by the risk-on action in the Asian equities and the futures tied to the S&P 500. The dollar weakened in early European trade Wednesday, with growing confidence surrounding U.S. fiscal stimulus and the vaccine rollout prompting traders to seek out riskier currencies. The dollar index was down 0.2% at 90.812, still only slightly above the recent 2 1/2-year low of 90.471. USD/JPY rose 0.1% to 104.23, while the risk-sensitive AUD/USD was up 0.5% at 0.7445.

A modest pickup in the USD demand prompted some fresh selling around GBP/USD on Tuesday. Concerns about the ever-increasing COVID-19 cases drove haven flows towards the greenback. Investors might refrain from placing aggressive bets, rather prefer to wait for fresh Brexit updates. Euro area GDP grew at a strong pace in third quarter. EUR/USD pair trades with modest gains above 1.2100. The dollar index was up 0.1% at 90.907, only slightly above the 2 1/2-year low of 90.471 on Friday. The risk-sensitive AUD/USD was down 0.2% at 0.7409.

GBP/USD witnessed some follow-through selling for the second consecutive session on Monday. Not so optimistic Brexit-related headlines took its toll on the sterling and exerted some pressure. Softer risk tone benefitted the safe-haven USD and contributed to the pair’s intraday selling bias. With less than four weeks left before the Brexit transition period ends on December 31, the not so optimistic developments continued weighing heavily on the British pound. In fact, the GBP/USD pair broke through the 1.3300 mark and tumbled to over two-week lows during the early European session. EUR/USD drops to 3-day lows near 1.2080 on Monday. The risk aversion mood supports the demand for the dollar. German Industrial Production expanded 3.2% MoM in October. The single currency adds to Friday’s corrective downside and drags EUR/USD to fresh lows in the sub-1.2100 area on Monday. The dollar pushed higher in early European trade Monday, rebounding from multi-year lows as Covid-19 cases continue to mount and lockdowns expand, weighing on the U.S. economic recovery. The dollar index was up 0.3% at 90.993, rebounding a touch having hit a 2 1/2-year low of 90.471 on Friday. USD/JPY was largely unchanged at 104.11, while the risk-sensitive AUD/USD was flat at 0.7420, not far off its highest level in more than two years.

GBP/USD bulls turn cautious amid the incoming Brexit-related headlines. Hopes for a last-minute Brexit deal, weaker USD helped limit the downside. Investors await Brexit updates, NFP report for a fresh directional impetus. GBP/USD seesaws in a nearly 25-pip trading range above 1.3445, currently teasing the intraday low of 1.3444 while heading into Friday’s London open. Although US dollar weakness propelled the quote to the yearly top the previous day, Brexit woes are back to haunt the Cable buyers. EUR/USD has reached 1.2145, the 78.6% retracement and this may provoke some consolidation, it is also the break up point longer term to 1.2622, the 200 month moving average, this remains our overall target, representing a 1.5% weekly gain, and well above the horizontal resistance of $1.2011 (Sept. 1 high). If the gains above 1.2011 are held through Friday's close, a bullish breakout would be confirmed on the weekly chart. The dollar slipped lower in early European trade Friday, on course for a loss of nearly 2% for the week, as increased optimism that U.S. lawmakers will come together to agree a new coronavirus relief package boosts risk sentiment. The dollar index was down 0.1% at 90.638, just above the two-and-a-half year low of 90.504 seen on Thursday. USD/JPY rose 0.1% to 103.92, while the risk-sensitive AUD/USD edged 0.1% lower to 0.7431, not far off its highest level in more than two years.

The continuation of the upside momentum in Cable is predicted to meet a tough barrier in the 1.3500/15 area, noted Commerzbank. “GBP/USD has eroded its long term downtrend and is approaching the 1.3500/1.3515 December 2019 high. This is a long term pivot and both levels represent major resistance, we would allow for them to hold the initial test.” “Nearby support is offered by the 55 day moving average at 1.3065 and also by 1.3009, the 5 month uptrend and for now, while above here the market remains bid.” “EUR/USD has maintained upside pressure following the break above the 1.2014 August peak. It is poised to reach 1.2145, the 78.6% retracement and this is the break up point longer term to 1.2622, the 200 month moving average. We note the 13 count on the 240 minute chart and will attempt to buy the dips. Dips should find initial support at 1.1921 and good nearby support at the 1.1800/03 November 23 low and the 55 day ma. EUR/USD will remain bid while above the six month support line at 1.1742.”The dollar continues to lack friends in early European trade Thursday, with optimism over the rollout of vaccines and talk of new U.S. fiscal stimulus prompting risk-on trades. The dollar index was down 0.2% at 90.925, trading around levels last seen well over two years ago. USD/JPY fell 0.1% to 104.38, while the risk-sensitive AUD/USD climbed 0.2% to 0.7428, its highest level in more than two years.

GBP/USD was trading above 1.3400 going into European trading, having hit three-month highs at 1.3440 amid broad-based US dollar weakness. However, the pair dropped back to 1.3350 after the Medicines and Healthcare Products Regulatory Agency (MHRA), the UK’s medical regulator, gave a green signal to the coronavirus vaccine co-developed by BioNTech SE and Pfizer Inc on Wednesday, concluding it’s both safe and effective. The cable traders seems to be waiting for news from the Brexit negotiations for new imputes. The vaccine approval news failed to boost risk appetite, which is nowhere near the support came from the vaccine efficacy news in November. EUR/USD has cleared the 1.2014 August peak, such a move targets initially 1.2145, the 78.6% retracement and longer term 1.2622, the 200 month moving average. The dollar weakened in early European trade Wednesday, as vaccine optimism and talk of further fiscal stimulus from the United States gave fresh encouragement to higher-yielding currencies. The dollar index was down 0.2% at 91.157, hitting its lowest levels since April 2018. USD/JPY rose 0.2% to 104.47, while the risk-sensitive AUD/USD climbed 0.2% to 0.7381.

GBP/USD eases from the intraday high of 1.3366 while trading near 1.3360 during the pre-London open session on Tuesday. The Cable prints 0.25% intraday gains by press time as the bulls prefer following US dollar (USD) declines over Brexit headlines ahead of the UK Manufacturing PMI for November. US dollar index (DXY) fades bounce off the lowest since April 2018, marked the previous day, as US officials highlight concerns over the economic recovery while pushing for the coronavirus (COVID-19) aid package. Be it Fed Chair Jerome Powell or US Treasury Secretary Steve Mnuchin, not to forget Dallas Federal Reserve Bank President Robert Kaplan, all of them showed discretion about the likeliness of the world’s largest economy to lost recovery moves if the much-awaited stimulus stays far. EUR/USD re-targets the 1.2000 mark on Tuesday. German jobless rate ticked lower to 6.1% in November. EMU’s advanced inflation figures next of note in the docket. Dollar Index was down 0.1% at 91.748, after suffering its worst month in November since July. USD/JPY rose 0.1% to 104.33, while the risk-sensitive AUD/USD climbed 0.3% to 0.7366 after the Reserve Bank of Australia kept its key interest rate and three-year yield target at 0.10%, as expected.