- GBP / USD gained momentum and broke the important resistance at 1.3850.
- The dollar with mixed results, DXY around 93.00 supported by the fall of the EUR / USD.
GBP / USD found support above 1.3810 and rebounded strongly, breaking the 1.3850 barrier, climbing to 1.3868, the highest level since March 22nd. It has remained above 1.3850 since then, and is trading at 1.3860 / 65, 150 pips above last week’s low.
The Friday’s US employment data was encouraging, at the same time that the stock markets also climbed limited the advance of the dollar. The data continues to point to faster growth in activity expected in the US than in other developed countries.
The pound continues to count behind with the support of vaccination process in the UK. There is growing expectation for Prime Minister Boris Johnson’s announcements on the second phase of easing restrictions. This would allow the opening of shops, pubs and restaurants and hairdressers from April 12 and the possibility of reopening trips abroad. Another factor supporting the pound is being the fall of the EUR / GBP, which operates at monthly lows below 0.8480.
On Monday the markets operate with limited volatility, due to the Easter holidays. Activity data from the US service sector (PMI Markit and ISM), and the factory orders report, will be released.
Technical levels
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