GBP / USD is targeting 1.41, but headwinds from the pandemic in the UK could push the price below 1.40 again in the event of any profit taking, economists at DBS Bank reported.
Key statements:
“At this level, the GBP seems overbought. Aside from a relative strength index (RSI) around 74, the British pound is at the top of an ascending price channel established after the November US elections. “
“While UK research showed vaccines drastically reduced hospitalizations and transmissions, the Prime Minister Boris Johnson it has decided to go slow in removing the restrictions that will be carried out in four stages between March 8 and June 21 “.
“Chancellor of the Exchequer, Rishi Sunak, will present his budget on March 3. It is reportedly looking to increase the corporate tax rate each year by one percentage point to 23% for the 2024 general election from its current 19%. “
“With the UK economy slowly emerging from the pandemic in the first half of 2021, the British pound could slip back below 1.40 if the bulls decide to lock in some gains.”
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