GBP/USD is trading closer to 1.37, the lowest since mid-April. The safe-haven dollar is gaining ground across the board as the Delta covid strain spreads quickly. Concerns about rising infections in the UK increase as the country reopens.
Pound/dollar has hit the lowest in three months and suffers from downside momentum on the four-hour chart. It also trades under the 50, 100 and 200 Simple Moving Averages and the Relative Strength Index is just above 30 – outside oversold conditions.
Support awaits at the psychologically significant 1.37 level, which is also the daily low. The next cushion is critical – the double-bottom of 1.3670, recorded in the spring. It is followed by 1.3620. A close back above 1.375 is needed to ease the immediate downside bias, with resistance then seen next at the top of the near-term range at 1.3800 and 1.3900.
Some resistance is at 1.3730, the previous July low, and then by 1.3750 and 1.3785.
