GBP/USD traders bear the burden of the UK’s second national lockdown while ignoring upbeat news favoring odds of a soft Brexit. Also weighing the quote could be the US dollar gains amid the cautious sentiment ahead of tomorrow’s American election.

In order to avoid the 20% GDP contraction, as it happened during the first lockdown in April, the BOE is expected to announce further easy money during this week’s monetary policy meeting was signaled.

 The news said, “Bank of England (BOE) policymakers are expected to inject up to £100bn into the economy when they meet this week amid mounting fears that the four-week lockdown for England will lead to a double-dip recession.”

Apart from the economic fears, worries that the death toll could be doubled, as indicated by UK PM Boris Johnson, join a longer than initially anticipated lockdown, at least till early 2021, suggested by The Times, also weigh on the pair.

EU and British Brexit negotiators will continue talks in Brussels on Monday and until around mid-week, sources on both sides said on Sunday, in a sign both sides are still pushing to avoid a damaging breakdown in trade in less than nine weeks. Intensive and secretive, the talks are a final bid to seal a new partnership agreement for when Britain’s transition out of the European Union runs its course at the end of this year.

An EU diplomatic source and a UK official said negotiations would continue face-to-face in Brussels on Monday following a full weekend of talks. An update on their progress and the chances of a deal was expected on Wednesday or Thursday, they added.

GBP/USD 4 Hour Chart:

Support: 1.2903 (S1), 1.2856 (S2), 1.2814 (S3).

Resistance: 1.2992 (R1), 1.3034 (R2), 1.3081 (R3).

Even though Brexit talks seem to be soft, the lock-down puts pressure on the pound. We expect a bearish trend for GBP/USD.