BTC to GBP was lower on the day after rallying to test the £12k level, which also capped gains on Friday. Bitcoin is losing ground after positive results regarding a coronavirus vaccine.
Breaking news ahead of the U.S. session saw drugmaker Pfizer announce that their phase 3 vaccine trial had seen 90% success in protecting trialists from the virus within 30 days. The news has boosted markets such as stocks and oil, whilst it also saw safe havens hit as the virus premium is removed from markets.
The potential for a vaccine could see an end, or reduction, for central bank stimulus measures going forward and that could reduce the inflation fears that have dogged global economies. Talks over a second stimulus package in the U.S. were weighing on the U.S. dollar, which was a big part of the summer rally in cryptocurrencies and we also saw a further extension to the Bank of England’s quantitative easing program.
Brexit has also weighed on the pound sterling recently but talks were continuing today with Prime Minister Boris Johnson and the EU’s Chief Negotiator Michel Barnier both taking an upbeat stance ahead of this weeks’ talks. The U.K. left the EU political structure on January 31st but remains economically tied until December 31st. Any failure to strike a deal will see volatility in sterling.
BTCGBP is trading above the resistance at 10,983 and a pullback would need to find buyers there. Further weakness could see it move back to the 9,550 level. A bearish close today should see the first level hit in the coming days. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
