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GBP/USD is trading around 1.3830 as the British government is working to ease tensions with the EU about the exports of Astra’a doses amid threats of an export ban. In the view of economists at OCBC Bank, the cable is set to sink if breaks below the 1.3800 level.

Key quotes

“The vaccine-related squabble between the UK and EU seemed to affect the GBP more heavily than the EUR for now. Going forward, if this translates to a slower pace of vaccination in the UK, the GBP/USD may see further downside pressure.”  

“A close below the 1.3800 mark may see further downside impetus towards 1.3600/10 on a multisession horizon.”