Heading into the Christmas-holiday shortened week, the concerns over the corona virus contagion have intensified, especially after a new covid strain was found in the UK. Italy announced late Sunday that it had confirmed a COVID-19 case in the country, which had the new variant detected in England.

UK PM Boris Johnson described the variant as up to 70% “more transmissible” and other UK authorities describe as “out of control”. British transport minister Grant Shapps urged Britons and particularly hauliers on Sunday not to travel to ports in Kent in southern England after France said it would bar those coming from Britain for 48 hours from Sunday night.

Earlier on Sunday, several European countries began closing their doors to travelers from Britain after the country tightened restrictions in London and southern England to try to curb the spread of a new strain of COVID-19.

“Following the French government’s announcement it will not accept any passengers arriving from the UK for the next 48hrs, we’re asking the public and particularly hauliers not to travel to Kent ports or other routes to France,” Shapps said on Twitter.

The travel restrictions come at a difficult time for many British companies, which are engaged in last-minute stockpiling before Dec. 31, when a status quo transition period with the European Union ends and new customs rules come into effect.

Adding to it, Scottish First Minister Nicola Sturgeon has asked the UK’s PM Boris Johnson to go against his Tory party’s wishes and seek a Brexit transition period extension. The request comes following further delays to any agreement with the EU on a Brexit deal where yet another penciled-in deadline has been moved.

GBP/USD 4 Hour Chart:

Support: 1.3470 (S1), 1.3412 (S2), 1.3352 (S3).

Resistance: 1.3588 (R1), 1.3647 (R2), 1.3705 (R3).

Cable has shown a expected drop with the prevailing catalyst, we expect a bearish trend for GBP/USD.