GBP / USD hits 1.3900 zone for the first time since April 2018

The GBP / USD has soared more than 65 pips higher so far this Monday after jumping from the 1.3834 lows of the Asian open to new highs since April 2018 at 1.3902 in the last hours.

At time of writing, the pair manages to hold firm very close to the 1.3900 region, trading above 1.3894, gaining 0.31% on the day.

Optimism has gripped the pound due to the good course on UK vaccination rate. Boris Johnson, Prime Minister, was optimistic after the country had reached the target of 15 million vaccinated people in mid-February. The Telegraph newspaper has noted the March 8 as a tentative date to lift restrictions of activity. The Minister of Foreign Affairs, Dominic Raab, was somewhat more cautious and made statements collected by Reuters in which he stated that “we share the desire to get out of this confinement, we want to do it in a responsible and safe way and, therefore, we have to be based on the evidence. ”

On the other hand, the dollar index has weakened due to the appetite for risk that dominates the markets, which see the approval of the US stimulus plan closer. The DXY index has recently fallen to 90.29, its lowest level since Thursday, February 11.

With no data to be released in the US today for the President’s Day holiday and with no UK data scheduled, traders will continue to keep a close eye on market sentiment.

Niveles GBP/USD

Immediate resistance in case of further rises is at 1.3934, highs of April 27, 2018. Higher up awaits the 1.4000 zone.

On the downside, initial support will be at the 1.3800 region. Further down, expect firmer support at 1.3775, the February 12 bottom.

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