GBP/USD Price Analysis: Acceptance above 50-DMA is critical to resume rally towards 1.3500

• GBP/USD clinging onto 50-DMA hurdle amid renewed Brexit tensions.
• Subdued Treasury yields and the US dollar help keep GBP bulls hopeful.
• Omicron concerns also threaten the upside attempts in cable.

GBP/USD remains on the defensive after peaking at five-week highs of 1.3461 on Tuesday, as the pound bears the brunt of the renewed Brexit concerns and a record rise in covid cases in the UK.

According to Politico, European Commission Vice President warned of a Brexit deal ‘collapse’ if the UK exits Northern Ireland (NI) Protocol. Meanwhile, the UK recorded a fresh all-time high in daily covid cases to the tune of above 122,000. The authorities have dismissed new activity restrictions during the year-end holiday season.

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