UK announced the toughest nationwide coronavirus lockdown since March, as Prime Minister Boris Johnson warned that weeks ahead will be “the hardest yet”. The lockdown will last for at least seven weeks into mid-February. All non-essential shops and schools are closed while people are told to stay at home. The UK was entering “the last phase of the struggle”, Johnson said, adding: “With every jab that goes into our arms, we are tilting the odds against Covid and in favour of the British people.”
Sterling is clearly one of the weakest for this week so far, but downside is limited at this point. A focus would be on GBP/JPY. The choppy rebound from 133.03 is more corrective looking than not, considering both the structure and MACD momentum. Yet, break of 139.44 support is needed to indicate short term topping first. Further break of 136.96 support would suggest that the pattern from 142.71 is extending with a third leg through 133.03 support. But before that, another rise would be mildly in favor for a take on 142.71 resistance.
