GBP/USD continues to make little headway to the upside, despite Omicron optimism, with the previous channel support now looking increasingly like resistance
Sterling is modestly higher against both the US Dollar and the Euro but GBP/USD remains close to trendline support and if that breaks then further losses are likely
Trader confidence is picking up as hopes rise that the Omicron coronavirus variant will be less damaging to the global economic recovery from the pandemic than once seemed likely
EUR/USD was relatively stable last week but it is still hard to see a stronger recovery unless the European Central Bank reverses its position that a tightening of Eurozone monetary policy is not n.
The past week’s rally in EUR/GBP will likely falter soon as concerns about the Omicron variant of Covid-19 recede and a reshuffle of the UK Labour Party’s shadow Cabinet is shrugged off.