The GBP/USD it has suffered a sharp 40 pip retracement since the Asian session, when it made an intraday high at 1.3790. In the European morning, the pair has found ground in 1.3750, new one-week low.
The fall in the pair comes hand in hand with the general rise of the dollar in the markets in the face of a climate of aversion to risk derived from the advance of the Delta variant in countries like the United States, whose president will present a strategy to combat it on Thursday. The DXY index that measures the greenback has risen this Wednesday to 92.70, its highest price since September 1.
The problems derived from Brexit They also weigh on the pound sterling, which is also affected by the tax increase plan of British Prime Minister Boris Johnson.
During the day on Wednesday the attention of the speakers of the pair will focus on the testimony before the British Parliament of the authorities of the Bank of England. In the United States, John C. Williams, president of the New York Fed, will speak from 17.00 GMT.
With the cross trading at time of writing above 1.3762, falling 0.18% daily, an extension of the decline will find support in the area. 1.3730/31, where is the ground from September 1. A break at this level could lead to 1.3680, floor of August 27.
On the upside, it is necessary to recover 1.3800 again to try to reach resistance 1.3856, ceiling of September 7. Above wait 1.3891, maximum of September 3 and of the last four weeks.