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GBP/USD bounced off around 1.4100, now trading at about 1.4170 amid easing dollar's demand. The UK's spokesman said that nothing in current UK data would prevent lockdown easing, backing the pound.
The GBP/USD pair managed to rebound around 60-65 pips from early European session lows and refreshed daily tops, around the 1.4170-75 region in the last hour.
The British pound kicked off the new week on the backfoot and was weighed down by a combination of factors. Doubts over the UK government's plan to reopen the economy on June 21 in light of the spread of the so-called Delta variant turned out to be one of the key factors that undermined the sterling through the first half of the trading action.
Apart from this, indications that Britain's relationship with the European Union has been souring exerted some additional downward pressure on the GBP/USD pair. Ahead of Brexit talks on the Northern Ireland protocol later this week, the EU's ambassador to the UK said on Sunday that the level of trust between the two powers was low.
Some support awaits at last week's trough of 1.4080, followed by 1.4050. A critical cushion is at 1.4010.Resistance awaits at 1.4160, It is followed by 1.41, which held GBP/USD down twice last week, and then by 1.4200 psychological round figure mark .
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