GBP/USD eases towards 1.3100 despite UK’s efforts to fast-track COVID-19 trials

• GBP/USD defies the previous day’s halt to two-day losing streak while reversing from 1.3158.
• The University of Cambridge plans for autumn trials of the coronavirus vaccine as it received 1.9 million pounds of government help.
• Ireland’s Taoiseach Martin stays confident of Brexit “landing zone”, EU’s Barnier tells bloc members to be 'cold-blooded' with Britain.
• US Durable Goods Orders can offer intermediate moves before the Jackson Hole Symposium.

GBP/USD seesaws around the intraday low of 1.3132, currently at 1.3138, following its pullback from 1.3158 before Wednesday’s London open. In doing so, the Cable fails to extend the previous day’s recovery moves, the exception in the last four days, amid the US dollar pullback. With the market’s cautious move ahead of the key events on Thursday and Friday weighing on the pair, news suggesting the UK government’s push for the coronavirus (COVID-19) trials seems mostly ignored.

Following the US push to find the pandemic’s cure, either via rushing for vaccine deals or authorizing plasma usage for treatment, the British policymakers also lose strings for UK drugmaker.  “British drugmaker AstraZeneca has begun testing an antibody-based cocktail for the prevention and treatment of COVID-19, adding to recent signs of progress on possible medical solutions to the disease caused by the novel coronavirus,” said Reuters.

Elsewhere, Irish leader Michael Martin shared his Brexit-positive “gut instinct” after meeting the UK PM Boris Johnson for the first time after elected in June. However, the European Union (EU) diplomat Michel Barnier has told the EU states to be 'cold-blooded' with Britain as the Brexit trade deal deadline looms, per the UK Daily Mail.

Additionally, speculations concerning PM Johnson’s resignation after six months were termed “nonsense” by the Tory leader while Reuters cite Hong Kong buyers’ rush for UK properties after security law.

Amid all these catalysts, stocks in Asia-Pacific trade mixed whereas the S&P 500 Futures seesaw around the record top flashed the previous day. However, the US 10-year Treasury yields gain 2.6% to pierce 0.70% as markets remain mildly positive amid Sino-American trade optimism despite the latest downbeat comments from the US Secretary of State Mike Pompeo’s comments.

Moving on, July month’s US Durable Goods Orders, expected to cool down from 7.6% to 4.3%, may offer immediate moves ahead of the Jackson Hole Symposium events that start tomorrow.

Technical analysis

While repeated failures to cross 1.3200 keeps the sellers hopeful, an ascending trend line from June 30, at 1.3013, follows the 21-day EMA level of 1.3050 to question the quote’s short-term downside amid strong RSI conditions. On the contrary, an upside break of 1.3200 will challenge the monthly high, also the yearly top, near 1.3270 and December 31, 2020 peak surrounding 1.3285.