New virus strains can push economic recovery at back. Brexit concerns may rise and weigh on the British Pound. Technically, GBP/USD has little support but can’t rule out chances of testing previous swing lows. The GBP/USD is jumping and dancing this week with no clear bias at the moment. Overall, the news is not healthy for the British Pound while US Dollar is getting bids amid a positive economic outlook. COVID hitting GBP/USD Meanwhile, there is traditionally little positive news in the UK. At the moment, several topics remain completely incomprehensible at once. For example, how are the British authorities are going to remove all quarantine restrictions on July 19 and allow the citizens to walk everywhere without masks? Every day 25-30k new cases of the disease are recorded in the country, and doctors worldwide note the Indian strain among the sick. In addition, several deaths from the Indian strain were found among people already vaccinated in the UK. And in Israel, doctors concluded that Pfizer’s vaccine was only about 60% effective against the “lambda strain.” In general, the news is actually very sad. Boris Johnson, who, it seems, from the very beginning of the epidemic, was not eager to introduce a single quarantine and lockdown, hastened this time. Unfortunately, this haste has already led to a full-scale fourth wave. So far, the British authorities clearly expect that the vaccination rate will allow the entire population of Britain to be vaccinated within a month, a maximum of one and a half. But in practice, things may not turn out so sweet. Get FREE Crypto Signals Now! Brexit concerns It is also absolutely unclear how all the proceedings between the European Union and Great Britain will end. At the moment, it is clear that Brussels clearly does not want to escalate the situation. It so far confines itself to threats, offering London to sit down at the negotiating table and stop unilaterally changing the clauses of the agreements already signed. However, any patience sooner or later comes to an end. It is unlikely that the European Union will watch for a long time how London changes the “Northern Ireland Protocol” because it considers it ineffective. GBP/USD technical view: Key levels to watch The GBP / USD pair resumed its downward movement on the 4-hour timeframe and consolidated below the moving average (20 and 50). However, the price bar (after Fed meeting minutes) closed off the lows, near the middle with a very high volume. It indicates that there is evident buying in the 1.3730-50 zone. Still, we cannot rule out a test of the recent swing low at 1.3730, leading to 1.3600s. 4-hour chart of GBP/USD Support levels: S1 – 1.3794 S2 – 1.3733 S3 – 1.3675 Resistance levels: R1 – 1.3855 R2 – 1.3916 R3 – 1.3977 Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next EUR/USD: Risk-off mode weighing Saqib Iqbal 1 year New virus strains can push economic recovery at back. Brexit concerns may rise and weigh on the British Pound. Technically, GBP/USD has little support but can't rule out chances of testing previous swing lows. The GBP/USD is jumping and dancing this week with no clear bias at the moment. Overall, the news is not healthy for the British Pound while US Dollar is getting bids amid a positive economic outlook. COVID hitting GBP/USD Meanwhile, there is traditionally little positive news in the UK. At the moment, several topics remain completely incomprehensible at once. For example, how are… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.