- The pound extends the advance against a weak US dollar.
- GBP / USD rises for the fourth day in a row, staying above stiff resistance.
The GBP/USD It broke above 1.3790 and rose to 1.3797, reaching the highest level since April 2018. It remains close to the highs, clinging to daily gains and looking towards the 1.3800 zone.
The pound gained momentum during the US session and rose further against the dollar and erased losses against the euro. The US dollar remains under pressure but managed to stabilize during the momentum against the yen and commodity currencies. The DXY is hovering around 90.50 / 55.
The market participant continues to see positive developments regarding the COVID-19 vaccine in the UK. The recent gains add to those that followed last week’s Bank of England meeting. The central bank lowered expectations of negative interest rates, which boosted the pound.
From a technical perspective, GBP / USD continues to move in an uptrend. Despite some overbought readings on technical indicators, no signs of correction are seen. A break above 1.3800 should lead to more gains. On the other hand, a reversal below 1.3750 could suggest that some the pound is back in the 1.3600-1.3750 range.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
