Possible Side Effects of AstraZeneca Vaccine Sends GBPUSD to 1.3800 Level
Key points
- AstraZeneca vaccine cases of blood clots resulting in death
- The UK is set to ease lockdown next week
- GBPUSD spotted below the descending trend line
GBPUSD was stoked by lockdown optimism when Prime Minister Boris Johnson announced that some lockdown restriction will be eased from 12th April. Businesses such as pubs, restaurants with outdoor services can carry out business activities and gyms, non-essential shops and hairdressers. This pushed GBPUSD to 1.3900 during the Easter celebrations. However, with the recent development’s impact, GBPUSD failed to reach the 1.4000 psychological level as expected as the AstraZeneca vaccine side effects weighed in, sending the pair back to 1.3800. With over 20 million doses already administered, there have been about 79 cases of rare blood clots resulting in 19 deaths. This has forced Britain to discontinue using the AstraZeneca vaccine for citizens under 30 and administer alternative shots instead.
The latest set back is still not going to put a halt to AstraZenecavaccine roll out as more than 5 million people have received the second dose of the Covid19 vaccine, while infection numbers and Covid19 deaths continue to drop in the UK.
Technical outlook
Looking at the GBPUSD on the daily time frame has seen the pair move in a kind of sinusoidal wave pattern as price respected the channel to the upside. Currently, the price has broken out this channel, and a descending trend line which runs from 24th February, which happens to be its peak, has been established.
With price already retesting and having the daily candlestick close back below the descending trend line, shorts will likely be favoured, which could increase selling pressure.
Disclaimer: This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regardsto past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
