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GBP/USD has been under pressure as the dollar advances on the Fed’s taper talk. Cable will likely remain under pressure amid concerns about virus variants and the PM’s political issues, Yohay Elam, an Analyst at FXStreet, briefs.

See:  GBP/USD has the 1.49/1.51 area in its crosshairs – Credit Suisse

Sterling set to suffer on virus variants, taper talk, Boris’ troubles

“Boris Johnson is unfit to be prime minister – that has been the message from Dominic Cummings, the former all-powerful aide to the PM. The political scandal surrounding the handling of the pandemic has been grabbing attention and also weighing on the pound. Thursday’s testimony from Secretary of State for Health Matt Hancock may also complicate matters for the government.”  

“The variant first identified in India is of concern in Britain and beyond. France joined Germany in demanding quarantine from those arriving from the UK. While the vaccination campaign continues at full speed and the economy continues reopening, fears are hurting sterling.”  

The greenback has been benefiting from subtle hints about tapering from Federal Reserve officials. The latest to open the door to reducing the bank’s massive $120 billion/month printing project was Randal Quarles, a governor at the Fed. Quarles said that it might be appropriate to begin such a discussion in one of the upcoming meetings – echoing the sentiment from the meeting minutes.”

“Some support awaits at the daily low of 1.4090, followed by 1.4075, which cushioned the pair in mid-May.”

“Some resistance is at the daily high of 1.4140, followed by 1.4175 and 1.4210.”