GBP/USD points to a bounce toward 1.40 amid Britain's prospects of exiting the crisis
|GBP/USD has been extending its rally after UK PM Johnson presented a compelling exit strategy. US stimulus, a full buildup to Nonfarm Payrolls and Britain's vaccine statistics are all crucial to the next moves, FXStreet’s Analyst Yohay Elam reports.
Key quotes
“The UK has reached 28% of its population with at least one dose, an impressive feat. Holding the current pace would be positive for the pound, while a slowdown would weigh on it.”
“The House of Representatives is gearing up to pass President Joe Biden's ambitious $1.9 trillion covid relief package. Every vote counts and all eyes are on the most conservative members of the left-leaning party, most notably Joe Manchin III of West Virginia. If he has concerns, the bill would be delayed and markets could shiver.”
“America's vaccination campaign was hit by the storm, with the pace falling from around 1.7 million doses per day to below 1.5 million. The inoculations have already brought down deaths in nursing homes. An immunization ramp-up would help lift sentiment.”
“Friday's Nonfarm Payrolls are set to rock markets. While investment and shopping have risen, around ten million remain out of work. The calendar is showing that another month of job gains is on the cards, but to catch up, the NFP would need to surpass the pre-pandemic levels between 100,000 and 200,000 positions gained.”
“Resistance awaits at 1.40, the round number. It is followed by 1.4140, a line dating back to 2018 when GBP/USD last traded at these levels.”
“Some support awaits at 1.39, which was a swing low in late February. It is followed by 1.3820, a stepping stone on the way up.”
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