As per reports, the UK is close to loses hopes of a post-Brexit trade deal with the EU, and the UK Government’s working assumption is that the UK and the EU will trade on World Trade Organization rules when the current transition period ends on December 31. And the Financial Times has reported that the UK has given up hope of a trade deal with the US ahead of November’s US Presidential election.

Transport Secretary Grant Shapps said on Wednesday that the “United Kingdom wants a Brexit free trade deal with the European Union but is prepared for a no-deal.” On the other hand, British Prime Minister Boris Johnson’s spokesman said that the “UK has not put a specific time frame on getting a trade deal with the United States.”

The UK Express reported that the Tory leader Johnson ordered the British army to prepare for four major disasters -COVID-19, Brexit, flu, and flood catastrophe this winter which could devastate the UK. The British leader terms the nation’s response to the pandemic as ” of the UK union ahead of his visit to Scotland.

In US corona virus cases are skyrocketing. Cases are nearly 70,000 per day and over 1,100 deaths were recorded, the highest since May. President Donald Trump’s shift to address the disease may take time to have an impact. COVID-19 cases are also rising in other places of the world, with Tokyo hitting a record 300 infections per day. Hong Kong and Spain are also dealing with outbreaks and most new cases are in Latin America.

Update on US’s labor market is due out today with initial jobless claims – for the week when also Non-Farm Payrolls surveys are held – are forecast to hold at 1.3 million while continuing claims carry expectations for a decrease toward 17 million.

GBP/USD 4 Hour Chart:

Support: 1.2670 (S1), 1.26073 (S2), 1.2571 (S3).

Resistance: 1.2770 (R1), 1.2806 (R2), 1.2869 (R3).

Dollar is suppressed against Pound with all the catalysts driving it in the direction, Whether US Unemployment Claims makes a difference in the direction is yet to see. As of now, we expect a bullish trend for GBP/USD.