Pound moves higher on Tuesday as a recovery continues. Worries that are related to the UK’s ability to convince the European Union (EU) over losses in fisheries and vaccinations hopes join the US dollar weakness to boost up the pound. Global markets are in uptrend in the middle of calls that upcoming US official Yellen will be able to get the Biden government’s fiscal stimulus through the parliament.

UK PM Boris Johnson pledged £23million to help the fishing exporters who are affected by Brexit, as per a report, “British exporters are predicted to face €28 billion in losses this year alone.” Bloomberg came out with the news suggesting “The rejection rate for cross-Channel cargo rose again last week to 168% of the third-quarter average. It had peaked for 2020 near the end of the year, when France shut its borders to UK haulers for 48 hours to contain a new coronavirus strain before falling over the holiday period. ”Not only cargos but the service providers are also criticizing the Brexit deal. The same could have London Mayor Sadiq Khan to claim the agreement signed on Christmas Eve was effectively a no-deal Brexit for the lucrative sector which is largely based in the UK.

Because of this, Britain is under immense pressure to change the terms of the Brexit deal and thus today’s voting in the House of Commons could offer some good and satisfactory moves. However, talks surrounding China have committed human rights abuses against its Uighur Muslim population, and its linkages to Brexit hit the mood hardly while an independent panel, cited by The Guardian, has already criticized Beijing and the World Health Organization (WHO) for their role in covid restrictions.

On the other hand, Dido Harding today said the UK is in one of the ‘leading positions worldwide’ to recognize and deal with new variants of the coronavirus. And the NHS Test and Trace boss admitted to MPs that her biggest fear about Covid-19 is ‘what we don’t know’, saying she was certain it would present new, unknown problems in the future. The system, which now claims to be capable of doing more than 800,000 coronavirus swab tests every day, is one of the most comprehensive in the world.

GBP/USD 4 Hour Chart:

Support: 1.3536 (S1), 1.3487 (S2), 1.3455 (S3).

Resistance: 1.3618 (R1), 1.3650 (R2), 1.3699 (R3).

Amidst all the catalysts favoring the pound buyers, we expect a bullish trend for GBP/USD.