August 5, 2020 GBP / USD Analysis

August 5, 2020 GBP / USD Analysis

• GBP / USD did not rise from the daily increase to the regions above 1.3100 level. • Concern about the second wave of the coronavirus epidemic, and Brexit, which cannot be agreed, puts pressure on the GBP. • Extensive USD weakness helped prevent deeper losses ahead of BoE on Thursday. The pair managed to attract attention on Wednesday and made a good jump of about 90 points from the previous day's 1.2980 level. Heavy weather surrounding the US dollar was seen as one of the most important factors behind the sudden rise of the GBP / USD pair in the past hour. The dollar fell to its lowest level in two years, with concerns starting with the rise of coronavirus cases and hoping for a quick economic recovery. This combined with the stalemate in the next round of US financial incentive measures, further weakening the already weak US dollar. However, concerns about the second wave of the coronavirus epidemic in the UK prevented the GBP bulls from making aggressive bets. This is behind the unrecorded Brexit concerns that limit the rise of the GBP / USD pair and lead to some new sales at higher levels. The British Pound lost some value after the final UK Services PMI dropped to a slightly lower level than the prediction of 56.6. However, investors seemed reluctant to appear aggressively to make aggressive bets before the British Central Bank announced its monetary policy decision on Thursday. Meanwhile, Wednesday's US economic data could affect USD price dynamics and then create short-term trading opportunities in the early North American session.