The GBP/USD pair dropped to fresh one-month lows, around the 1.4035-30 region, albeit recovered few pips thereafter. The pair was last seen trading around the 1.4070-75 area, still down nearly 0.30% for the day. A combination of factors prompted some fresh selling around the GBP/USD pair on Tuesday and led to an intraday decline of nearly 100 pips from the 1.4125-30 region. The UK government's decision to delay the final stage of easing lockdown measures dampen prospects for a rapid UK economic recovery from the pandemic amid the spread of the so-called Delta variant. Apart from this, concerns about the EU-UK stand-off on the Northern Ireland protocol acted as a headwind for the British pound.
With Tuesday's downfall, the GBP/USD pair now seems to have confirmed a bearish break below a two-month-old ascending trend-channel and remains vulnerable to slide further. Hence, a subsequent decline towards challenging the key 1.4000 psychological mark, en-route the 1.3980-75 horizontal resistance turned support, now looks a distinct possibility. 
Signals World Providing Trading Signals to the World
Signals for Mt4/Mt5 & Online Trading
Free TrialGBP/USD witnessed some heavy selling on Tuesday
- Details
- Category: Finance
The GBP/USD pair dropped to fresh one-month lows, around the 1.4035-30 region, albeit recovered few pips thereafter. The pair was last seen trading around the 1.4070-75 area, still down nearly 0.30% for the day. A combination of factors prompted some fresh selling around the GBP/USD pair on Tuesday and led to an intraday decline of nearly 100 pips from the 1.4125-30 region. The UK government's decision to delay the final stage of easing lockdown measures dampen prospects for a rapid UK economic recovery from the pandemic amid the spread of the so-called Delta variant. Apart from this, concerns about the EU-UK stand-off on the Northern Ireland protocol acted as a headwind for the British pound.
With Tuesday's downfall, the GBP/USD pair now seems to have confirmed a bearish break below a two-month-old ascending trend-channel and remains vulnerable to slide further. Hence, a subsequent decline towards challenging the key 1.4000 psychological mark, en-route the 1.3980-75 horizontal resistance turned support, now looks a distinct possibility.