GBP/USD: Mix of British concerns with a rush to the dollar expose the 1.3670 critical support

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.”