24th March, 2020 Sterling could be set for more weakness after Prime Minister Boris Johnson ordered a three-week lockdown to reduce the spread of the coronavirus. With “non-essential” shops and services being ordered to shut as part of the strict new measures, consumption could be hit, stimulating fears over the United Kingdom entering a recession. The latest flash manufacturing and services PMI data for March will be released later this morning. The Pound may end up offering a muted response to the data as investors focus on the three-week national lockdown and what it means for the economy.

Focusing on the technical outlook, a picture is worth a thousand words and this remains true for GBPUSD which is trading at levels not seen since 1985. Consolidation at the lows points to further downside with the first key level of interest at 1.1400. A breakdown below this level could open the flood gates towards 1.1300 and lower.

Source : Lukman Otunuga, Senior Research Analyst at FXTM

Reporting for EasyKobo on Tuesday , 24 March 2020 in Lagos, Nigeria