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GBP/USD has been under pressure as Brexit concerns join covid ones. Meanwhile, the dollar may be poised for a comeback after several days under pressure, which leaves the cable at risk of losing the 1.3670 critical support, as FXStreet’s Analyst Yohay Elam notes.

GBP/USD bears are in control

“Riots on the streets of Belfast – exactly 100 days after Brexit serve as a stark reminder of the implications of Britain’s exit from the EU and its complexities not only for trade but also for peace in Emerald Isle.”

“Hesitancy around taking protection against the virus is set to rise after experts found a link between rare blood clots and inoculation. Another downside drive for the pound is profit-taking, which followed several weeks of gains.”  

“The US economy is still on course to outperform its peers. A bump up in Chinese consumer and producer prices in March may serve as a hint that US inflation may also advance – forcing the Fed to raise rates sooner than later.”

“Critical support awaits at 1.3670, which was March’s low point. It is followed by 1.3610, a cushion from January, and then by the February trough of 1.3565.”  

“Some resistance is at 1.3705, a low point in late March, followed by 1.3780, the weekly high, and then by 1.3920, which worked as support last week.”