Pound is trading downside against the greenback. This can be related to the US President Joe Biden’s nomination for the Fed Chair’s position, Brexit woes, COVID-19 fears and Dovish stance of BoE bailey ahead of the UK and the US preliminary PMI numbers for November.

President Biden on Monday nominated Federal Reserve Chair Jerome Powell, a Republican, for a second four-year term, tapping the battle-tested centrist who helped lift the U.S. economy out of the COVID-19 recession and enjoys strong bipartisan support. Biden also nominated Democrat Fed Governor Lael Brainard as vice chair of the Fed’s Board of Governors, succeeding Republican Richard Clarida. This turned to be favorable for the US dollar and in turn weighed on the pound.

Brexit woes also plays a major role in betting the bearish trend for the quote. As per a recent report, With no breakthrough on the Northern Ireland (NI) border talks with the European Union (EU), UK’s Brexit Minister David Frost said, We can’t carry on as we were before,” Lord Frost said. “If, after Brexit, all we do is import the European social model, we will not succeed.” The policymaker also highlights that the NI border talks are his “top priority”.

On the other hand, recent report of Independence notes that “France has told the UK it is in its “best interest to settle” the post-Brexit fishing dispute, saying if the two countries are to work together the UK must remain “true” to their word.”

BoE Bailey also breaks the consumer confidence for pound. Over the weekend, Governor Bailey expressed that “inflation could be elevated for longer, though there is also the chance that it could not be as permanent as feared.”

He also added that “there are risks both ways. Obviously, our concern would be that if it gets into second-round effects, it could be elevated for longer.” During the last week, Governor Bailey showed that his uneasiness about the inflation outlook.

Apart from all this, worries about surging COVID-19 cases also benefits the greenback’s relative safe-haven status and weighs on the Sterling.

GBP/USD 4 Hour Chart:

Support: 1.3368 (S1), 1.3342 (S2), 1.3300 (S3).

Resistance: 1.3437 (R1), 1.3479 (R2), 1.3505 (R3).

Today’s UK PMIs and US PMIs are the key in directing the pair further; in the meantime all the catalysts weigh on the pound. We expect a bearish trend for GBP/USD.