UK ministers to discuss tighter travel

In order to discuss further tightening of the travel restrictions, the British ministers are likely to meet on Monday, the BBC News reported on Saturday. Sterling in for bumpy ride

Pound to US Dollar Exchange Rate

The government could announce a 10-day quarantine period in a hotel for incoming travelers, for which they would have to pay, the BBC said. UK ministers to discuss tighter travel

This comes after Prime Minister Boris Johnson said Friday that the UK may need to implement further measures to protect its borders from new covid strains. FX Signals – Dollar treads water

Meanwhile, the latest government record showed that Britain vaccinated 478,248 people in the 24 hours to Saturday with a first dose of the COVID-19 vaccine. UK House of Commons Speaker says post Brexit trade deal

Market implications

The pound traders could use the above report to extend the correction from 32-month tops of 1.3746. GBP/USD closed the week 0.35% lower around 1.3685, although finished higher on the week. Sterling gains on Brexit deal

GBP/USD Exchange Rate Gains

From a technical perspective, the overnight sustained move beyond the 1.3700 mark favours bullish traders and supports prospects for additional gains.

On the flip side, the 1.2130 level now seems to protect the immediate downside ahead of the 1.2100 mark. Failure to defend the mentioned support levels might prompt some technical selling and turn the pair vulnerable to retest weekly lows, around the 1.2055-50 region. The downward trajectory could further get extended towards the key 1.2000 psychological mark, which should act as a key pivotal point for short-term traders.