GBP/USD picks up bids from the last 6 months low on the US dollar pullback. The Sterling bulls  have been appeared ahead of the European Central Bank (ECB) meeting. The European Union (EU) has rejected a 28-page paper to change the UK’s Northern Ireland (NI) protocol request. The British government said on yesterday that post-Brexit trade rules it negotiated with the European Union “cannot go on” and need a major rewrite, straining already tense U.K.-EU relations.

The government has said Britain will justify unilaterally suspending the legally binding Brexit deal, but has decided not to do so. Since the UK left the EU’s economic warmth at the end of 2020, relations have encouraged trade arrangements for Northern Ireland, the only part of the UK, bordering 27 countries. The agreement reached between the two sides before leaving the UK meant that customs and border checks would be carried out on certain goods moving between Northern Ireland and the rest of the UK.

Meanwhile sterling Bancorp (STL) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.96%. A quarter ago, it was expected that this bank holding company would post earnings of $0.46 per share when it actually produced earnings of $0.51, delivering a surprise of 10.87%. This could be the reason Sterling upward momentum.

Elsewhere, US policymakers rejected an initial debate on President Joe Biden’s infrastructure spending bill, pushing it to Monday, but Democrats appear to be optimistic about the passage. Moreover, Sino-US conflicts are escalating as US Trade Representative Katherine Dai supports the Australian trade dispute with China. Given the lack of key data/events in the UK, GBP/USD traders will focus on ECB meeting results and US second tier data flow, not forgetting risk triggers, for new triggers.

GBP/USD 4 Hour Chart:

Support: 1.3627 (S1), 1.3543 (S2), 1.3495 (S3).

Resistance: 1.3759 (R1), 1.3807 (R2), 1.3891 (R3).

Amidst this the expectation of ECB meeting and Sterling Bancorp (STL) Beats Q2 Earnings Estimates report pushes the sterling into positive moment. We expect bullish trend for GBP/USD.