- GBP / USD manages to regain some positive traction on the last trading day of the week.
- The pullback in US bond yields keeps USD bulls on the defensive and offers some support for the pair.
- Concerns about a COVID-19 vaccine shortage in the UK could limit the pair’s gains.
The USD has seen some selling at the start of the European session on Friday and has pushed the GBP / USD pair back above the 1.3950 level, at new daily highs.
A modest pullback in US Treasury yields., from the one-year high of 1,754% hit the day before, has put some pressure on the US dollar. This, in turn, has helped the GBP / USD pair to halt the previous day’s rejection drop from the key psychological level of 1.4000 and to regain traction on the last trading day of the week.
Meanwhile, calmer sentiment in the bond market has provided a modest boost to global risk sentiment, which has been seen as another factor affecting the US dollar safe haven. That said, the optimistic US economic outlook should help limit the USD pullback and limit any significant rise in the GBP / USD pair.
Apart of this, News of a probable UK COVID-19 vaccine shortage could prevent investors from opening aggressive bullish positions on the British pound. A significant reduction in the supply of vaccines could derail the UK government’s plan to break out of the current lockdown and cloud prospects for a faster economic recovery.
This occurs after Thursday’s rather pessimistic statement from the Bank of England, which indicated that the outlook for the economy remained unusually uncertain. Furthermore, repeated failed attempts at higher levels warrant caution before positioning itself for any further bullish movement amid the absence of relevant economic releases on Friday.
GBP / USD technical levels
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