The dollar became weaker and slid to a 2-1/2-year low against a basket of major currencies on Thursday as investors wagered that more economic stimulus from Washington and the expected start of COVID-19 vaccinations would support riskier assets.

Bets on a successful roll-out of vaccines and China’s economic rebound are driving bets for global growth and against the world’s reserve currency. Some on Wall Street are warning that the greenback will undergo a bearish cycle with the Federal Reserve keeping rates low for years. Fed Chair Jerome Powell said Wednesday that the central bank will keep rates low until the economy is “very clearly past the danger” from the pandemic. During the global financial crisis, when the U.S. central bank employed quantitative easing, the dollar had gone through a similar decline.

On the other hand, U.S. legislators have failed to reach agreement on fresh relief for a pandemic-hit U.S. economy, there were early signs that a $908 billion bipartisan proposal could be gaining traction. Investors expect lawmakers to reach a deal eventually with the two parties also facing a Dec. 11 deadline to pass a $1.4 trillion budget or risk a shutdown of the government.

Britain on Wednesday approved a COVID-19 vaccine developed by Pfizer and BioNTech and said it would start vaccinating those most at risk early next week.

“Britain is starting vaccination and the U.S. is also expected to do so in coming weeks while coronavirus infections appeared to have peaked in Europe and the same could be said for the U.S. as well,” said Yujiro Goto, chief strategist at Nomura Securities.

GBP/USD 4 Hour Chart:

Support: 1.3289 (S1), 1.3212 (S2), 1.3136 (S3).

Resistance: 1.3443 (R1), 1.3519 (R2), 1.3596 (R3).

Amidst all the catalysts creating a favorable atmosphere for Pound, we expect a bearish trend for GBP/USD.