Cable traders are cautious ahead of the Uk events. The elections in the UK, including Scotland, as well as the Bank of England’s (BOE) Quarterly Inflation Report (QIR) could direct the cable further.

Britain holds its first local and regional elections since Brexit and the coronavirus pandemic on Thursday, In the recent years the United Kingdom has struggled to live up to its name, with tensions and old enmities flaring between the four nations that make up the kingdom – England, Scotland, Wales and Northern Ireland – and a resurgent threat that the union could disintegrate.

Votes on Thursday can lead to the opening of those divides further and the parliamentary election taking place in Scotland could even set the stage for a second referendum on independence, although public opinion on the debate is on a knife-edge.

The SNP’s leader, First Minister Nicola Sturgeon, is seeking a parliamentary majority after boosting her popularity with strong public engagement during the pandemic. She stressed in a televised debate on Tuesday: “Getting through this crisis is my priority.”

Elsewhere, the Bank of England is up for praising the economic recovery from the coronavirus (COVID-19), which in turn could brighten QIR forecasts. However, the tone of Governor Andrew Bailey will be watched closely for immediate direction.

On the other hand, The US dollar seem to gain some bid amid Asia as Beijing responds to the global leader anger over its political and trade behavior at the Group of Seven (G7) Ministerial Meeting. Also WHO Director- General Dr Tedros Adhanom Ghebreyresus has praised the commitment shown by Joe Biden’s administration to support the temporary waiver of intellectual property on Covid – 19 vaccines. This news also favors the greenback.

GBP/USD 4 Hour Chart:

Support: 1.3879 (S1), 1.3853 (S2), 1.3829 (S3).

Resistance: 1.3929 (R1), 1.3953 (R2), 1.3979 (R3).

The Uk election and BOE quarterly inflation report are about to shape the pound further. In the meantime, we expect a bearish trend for GBP/USD.