GBP/USD correction of 100 pip gap stalling as Ukraine crisis weighs

• GBP/USD holds in the bearish territory following the opening gap.
• Ukraine crisis weighing on risk-currencies as US dollar firms. 

GBP/USD is under pressure at the start of the week, down some 0.44% at the time of writing. The price, however, is off the lows that were printed following an opening gap of over 100 pips to 1.3307. Risk-off is the theme with US futures and Asian share prices in a sea of red as the Ukraine tensions mount.

News that Russian President Vladimir Putin has given the nuclear readiness order, saying “top officials in NATO’s leading countries have been making aggressive statements against our country,” according to a report from Russian state news operator TASS, has weighed on sentiment.

There were harsh sanctions imposed by Western nations on Russia over this weekend for the invasion of Ukraine. On Saturday, NATTO moved to block certain Russian banks' access to the SWIFT international payment system in further punishment for the nation's military assault against Ukraine.  Markets are now waiting in anticipation of a possible peace take between the two nations that could happen as soon as Monday morning.

Meanwhile, there will be more central bank speak this week. The Bank of England''s Saunders, Mann, Tenryro, and Cunliffe are all due to speak. Last week, Bank of England policymaker Mann highlighted high inflation expectations as a reason for voting for a 50 basis point interest rate rise earlier this month.

The Bank of England Governor Andrew Baileyinformed lawmakers he saw clear risks that inflation could overshoot their own forecasts but urged investors not to get too carried away about the likely scale of rate increases. Investors are fully pricing in another 25 basis point rate increase at the central bank’s next meeting on March 17 with another hike fully priced at the subsequent meeting in May.