The cable has shown a sideway trend and the market followed strengthening U.S. dollar, among other factors. The pound moved with a lack of direction at the start of September, though it will probably fall on the UK political and economic trends from mid-September onwards. 

Britain is on course to lose its status as one of Germany’s top 10 trading partners this year for the first time since 1950, as Brexit-related trade barriers drive firms in Europe’s largest economy to look for business elsewhere. The UK is expected to drop out of the list of Germany’s top 10 trading partners by the end of this year, official German statistics suggest. Germans spent £13.8bn, or nearly 11%, less on British goods in the first six months of 2021, according to data from the Federal Statistics Office.

U.S. Treasury Secretary Janet Yellen called on Congress to raise the debt limit, warning that the Treasury Department is on track to run out of cash and exhaust its “extraordinary” measures in October. From the reuters report “Risk sentiment did get a small boost after influential New York Fed Bank President John Williams said late on Wednesday that more progress is needed in the labour market before reducing its stimulus. Yet, his comments were hardly a surprise to anyone after surprisingly soft U.S. payroll figures published on Friday have effectively ruled out any chance of the Fed’s tapering this month.

On Wednesday, the US, Germany and the UK also marked an increase in daily covid cases. “There is the covid situation and the shortage of EU workers as a result of Brexit, for example. These factors led to a labor shortage and logistical chaos in the UK this summer.” “This is not a problem for the UK alone, but there are concerns about the rapid spread of Covid-19 among young people. This is apparently due to the slow pace of vaccinations among young people, but there are concerns that schools could become a hotbed for infections when lessons resume.”

Meanwhile dollar was supported by cautious risk sentiment stemming in part from worries about the Delta variant while the euro looked to the European Central Bank policy decision later in the day. The dollar index has risen for the third consecutive day on Wednesday as U.S. stocks stepped back with their high valuation undermined by doubts about the strength of the economic recovery

The doubts over US President Joe Biden’s six-pronged strategy, up for publishing on Thursday, joins the US diplomat’s mixed view on Jerome Powell’s reappointment as the Fed Chairman to also weigh on the sentiment. Further, signals from Republicans and some of the Democratic Party members to offer a bumpy road to the US stimulus also spoiled the mood.

GBP/USD 4 Hour Chart:

Support: 1.3734 (S1), 1.3698 (S2), 1.3670 (S3).

Resistance: 1.3798 (R1), 1.3826 (R2), 1.3862 (R3).

Amidst this above catalysts cable pair seems sideways in the market. We expect a mid-trend on today.