- GBP / USD is moving lower from the multi-year high it set earlier.
- Trading action is expected to remain subdued for the remainder of the day.
- The US dollar index records small losses ahead of job application data.
The pair GBP/USD extended the weekly rally and touched its highest level since May 2018 at 1.3686. However, ahead of the US session, the pair reversed its direction and was last seen trading at 1.3640, gaining 0.13% on the day.
On Wednesday, the British parliament approved the trade deal with the UK as expected. Meanwhile, British Health Secretary Matt Hancock announced that they will tighten coronavirus-related restrictions after confirming more than 50,000 cases on Tuesday.
However, these events failed to trigger a significant market reaction and the general weakness of the USD allowed the GBP / USD to remain bullish.
Later in the day, the US Weekly Initial Unemployment Claims will be the last data release of the year. Before this report, the US Dollar Index posted small daily losses at 89.63.
GBP / USD outlook for 2021
GBP / USD Price Forecast for 2021: Pound prepares for calendar return amid three exits.
“After a year full of surprises, it is difficult to predict, but if you take a chance, there is room for the pound to flourish in the spring as it surpasses its rivals as it comes out of the covid crisis and Brexit is forgotten”, says FXStreet. Analyst Yohay Elam. “The pound could turn further south once its peers catch up and the exit from the EU takes its toll.”
Technical levels
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