GBP/USD: Poised to surpass critical resistance at 1.3810
|GBP/USD has been benefiting from dollar weakness to advance toward 1.38. According to FXStreet’s Analyst Yohay Elam, the cable is set to surge above the critical 1.3810 resistance.
The possibility of mixing vaccines may strengthen Britain's resilience to supply shocks
“Mix and match – the experiment to combine doses from different COVID-19 vaccines is expanding from AstraZeneca and Pfizer to Moderna and Novavax. If it results in satisfactory immunization – or even greater protection – it could help Britain extend its vaccination campaign and prevent supply shocks from specific jabs.”
“The greenback has come under pressure after US inflation figures only met expectations – core prices were up 1.6% yearly in March – and failed to rally as some had anticipated. That means the central bank is in no rush to raise rates.”
“Jerome Powell, Chair of the Federal Reserve, is set to speak later in the day and he may laud these developments, reiterating his commitment to keeping rates low and supporting the economy.”
“The 4-hour chart shows that cable has been rejected at 1.3810, a line that capped it twice in late March – making it a critical barrier. Above 1.3810, the next cap is at 1.3850, a swing high from late March, and then 1.3920.”
“Support awaits at 1.3780, a peak from last week, followed by 1.3750 and 1.37.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.