The GBP/USD pair witnessed some heavy selling during the early European session and dived to four-week lows, around the 1.4075-70 region in the last hour. Following a brief consolidation through the first half of the trading action on Thursday, the pair met with some fresh supply and extended the previous day's fall from the vicinity of the 1.4200 mark. The British pound continues to be weighed down by the EU-UK collision over Norther Ireland protocol and talks that further easing of lockdown measures in the UK may be postponed.
This comes on the back of speculations that the UK may delay plans to end restrictions fully on June 21 in light of the spread of the so-called Delta variant. The combination of factors continued acting as a headwind for the sterling. This, along with a modest US dollar strength, exerted some downward pressure on the GBP/USD pair and contributed to the ongoing decline. Meanwhile, the latest leg of a sudden drop over the past hour or so could be attributed to some technical selling below the 1.4100 mark. A subsequent fall below the monthly swing lows, around the 1.4080 region might have already set the stage for additional weakness. That said, investors might refrain from placing fresh bets ahead of the US consumer inflation figures. 
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Free TrialGBP/USD drifted lower for the third consecutive session on Thursday
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- Category: Finance
The GBP/USD pair witnessed some heavy selling during the early European session and dived to four-week lows, around the 1.4075-70 region in the last hour. Following a brief consolidation through the first half of the trading action on Thursday, the pair met with some fresh supply and extended the previous day's fall from the vicinity of the 1.4200 mark. The British pound continues to be weighed down by the EU-UK collision over Norther Ireland protocol and talks that further easing of lockdown measures in the UK may be postponed.
This comes on the back of speculations that the UK may delay plans to end restrictions fully on June 21 in light of the spread of the so-called Delta variant. The combination of factors continued acting as a headwind for the sterling. This, along with a modest US dollar strength, exerted some downward pressure on the GBP/USD pair and contributed to the ongoing decline. Meanwhile, the latest leg of a sudden drop over the past hour or so could be attributed to some technical selling below the 1.4100 mark. A subsequent fall below the monthly swing lows, around the 1.4080 region might have already set the stage for additional weakness. That said, investors might refrain from placing fresh bets ahead of the US consumer inflation figures.