The GBP/USD pair traded with a mild positive bias through the first half of the European session, with bulls still awaiting a sustained move beyond the 1.3900 mark. A combination of diverging forces failed to provide any meaningful impetus to the GBP/USD pair and capped the upside just ahead of the 1.3900 round-figure mark. The US dollar found some support on Wednesday amid a modest pickup in the US Treasury bond yields and the prevalent risk-off environment. This was seen as a key factor that acted as a headwind for the major.
The GBP/USD pair, for now, seems to have stalled its upward trajectory, though the bias seems tilted in favor of bulls in the absence of any Brexit-related headlines. The British pound was supported by the declining trend in Delta variant infections and comments by the UK’s top epidemiologist, Neil Ferguson, saying that the end of the pandemic could be just months away.