The GBP/USD has managed to reverse the situation seen at the beginning of the European session, when it fell to a two-day low at 1.3916. Since then, the pair has risen about 80 pips, reaching in the last hour new highs of the day at 1.3998.
With the dollar rising on almost all fronts, the pound is showing itself as an exception. The reason is the positive news from the UK. After the UK suspended tariffs on some US products on January 1, 2021 (tariffs it had been forced to implement as a member of the EU for being involved in the subsidy dispute between the US and the European Union). for the issue of Airbus and Boeing), The United States has reciprocated by eliminating tariffs on some UK products, including malt, cheese, cashmere and machinery whiskeys. UK Commerce Secretary Lizz Truss said the move “paves the way for a better trade relationship with the United States across the board.”
Another reason that drives the British pound is Wednesday’s budget announcement (which beat expectations, judging from the bond market reaction, at least), as well as the success of the country’s ongoing vaccination process, which appears to be helping a much faster-than-expected drop in the weekly average of the daily number of deaths from Covid-19 (now less than 200 per day, considerably lowering previous SAGE forecasts).
In the next few hours, the pair’s traders will be very attentive to the speech of Jerome Powell, Chairman of the Fed, as his comments on bond or debt yields could move the dollar strongly.
Niveles GBP/USD
With the pair trading at the time of writing on 1.3991, gaining 0.29% daily, the first resistance on the upside is at 1.4006, ceiling of March 3. Above 1.4100, the next relevant barrier appears at 1.4182, the maximum of February 25, before reaching the key level 1.4243, the maximum since April 2018 registered on February 24.
To the downside, a break from the daily low at 1.3916 could trigger a decline towards 1.3859, the bottom of March 2. Lower expect 1.3829, the low of February 17.
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