The British Pound seems to be technically entering a downward looking channel. According to our expectation it will reach 1.4 USD per GBP on a foreign currency exchange markets. The movement itself may be provoked by any statistics or EU/UK post-Brexit trading issues. As there are always some negative news in the air it will be attributed to them.

Industrial production in the United Kingdom fell in April. Usually it is not important for the GBP rate but in this case it may give a push. British industry produced 1.3 percent less on a monthly basis. Economists expected a monthly increase of 1.0 percent.

Two important factors may be considered as triggers for GBP/USD movement. Significant rise in Delta (formerly known as Indian) COVID-19 strain prevalence certainly will put pressure on GBP appreciation. The perspective of the Northern Ireland spat with the European Union is the other.