COVID-19 And Sterling (GBP/USD) Price, Analysis And Chart:

• Sterling boosted by Oxford vaccination rollout (FXB).
• COVID-19 cases surge in the UK with further lockdown measures feared.
• GBP/USD touches 1.3700 but further gains may be limited.

The UK will begin the Oxford/AstraZeneca (AZN) vaccine rollout today with six hospitals expected to administer 530,000 doses of the vaccine. Described as a ‘pivotal moment’ by UK health secretary Matt Hancock, the program starts as COVID-19 cases once again soar across the country, with over 50k new cases recorded for the sixth day in a row on Sunday. The government is said to be looking at further lockdown measures as the new coronavirus strain spreads across the country, putting further pressure on the National Health Service. In an interview over the weekend with the BBC, UK PM Boris Johnson said that regional restrictions are ‘probably about to get tougher’ and that schools may be closed, although this is not something the government wants to do.

GBP/USD printed a fresh 32-month high of 1.3704 earlier today before selling pressure pushed the pair back down to 1.3680. The daily chart shows cable supported by all three simple moving averages, although the pair remain in overbought territory, according to the CCI reading. The next likely level of resistance is the April 2018 monthly high at 1.3793, while support is expected to show up around 1.3620/1.3630.

GBP/USD Daily Price Chart (June 2020 – January 4, 2021)