The cable pair seems to be under pressure among some reasons in economic conditions and New rules of Britain. This week, British Prime Minister Boris Johnson will set out his plans to manage the COVID-19 pandemic in the winter months, announcing a decision to scrap the introduction of vaccine passports and steps to end some emergency powers. Johnson, under fire from some in his governing Conservative Party for raising taxes to fix a health and social care crisis, looks set to try to soothe those critics by ditching plans to introduce passports despite an increasing number of coronavirus cases.

Speaking to broadcasters, Health Minister Sajid Javid said he did not anticipate more lockdowns and that the vaccine passports would not be introduced in England, as the government depends instead on vaccines and testing to defend the public. He told the BBC he was not “anticipating any more lockdowns” but would not take the measure off the table, that the government would not go ahead with vaccine passports to allow people to attend mass events and he wanted to “get rid of” PCR tests for travellers as soon as possible.

Javid added the government would remain “cautious”, but “the vaccine program, our testing program, our surveillance program, the new treatments… this is all our wall of defence and whilst there’s a lot of virus around, it is working”. Britain, which has one of the highest official COVID-19 death tolls in the world, has seen the number of cases climb over the last few months after easing restrictions in July, when the government first bet on vaccines to protect the public.

From one end of the supply chain to the other, the UK’s food producers have endured a summer of trouble. Iain Brown, vice chairman of East Scotland Growers (ESG) explained “The cold stores didn’t have enough space to hold our crops, so we had to throw away a week’s worth of production,”. And we’ve not had enough workers to harvest our vegetable crops, meaning they are going to waste.” While food shortages have been common in many countries over the course of the pandemic, Brown believes that one issue unique to the UK is making life extra painful by Brexit.

The TUC says the UK needs to be better prepared for future economic shocks. “The Covid is not going to stay the same,” union general secretary Frances O’Grady told his annual conference on Monday. “Climate chaos is already here, and the longer we put off coming to net zero, the more disruptive it will be,” he added. At the same time, the CBI is urging the government to avoid a post-epidemic tax hike on business. In a speech on Monday, CBI Director General Tony Tanker said ministers should make “big choices” to help business investment. Instead, he says, there is a risk that the government will use business taxes to “carry the burden” following the announcement of new taxes last week to fund social security. Not without consequences for such policy development, he would add.

On the other hand dollar started the big economic data on a solid foundation within a week, and investors began to pull away from the super-supportive policy, even as cases of the corona virus increased, as the Federal Reserve was cautious. The greenback ended its high on Friday, it benefited from both the security outflows and the yield-raising policy outlook in the US treasury. Reopening faces challenges from the consumer, who is alert. US consumer price data on Tuesday are expected to cut key inflation to 4.2%.

GBP/USD 4 Hour Chart:

Support: 1.3807 (S1), 1.3784 (S2), 1.3744 (S3).

Resistance: 1.3870 (R1), 1.3910 (R2), 1.3933 (R3).

Amidst this above catalysts the cable pair is on downtrend. We expect a bearish trend for GBP/USD.