GBP/USD Current price: 1.3832

  • The American dollar fell amid resurgent demand for high-yielding assets.
  • The UK macroeconomic calendar has nothing to offer until next Tuesday.
  • GBP/USD has turned bullish in the near-term, with an immediate resistance at 1.3845.

The British Pound was the most benefited from risk-appetite, recovering from an intraday low of 1.3715 on Friday to hit a weekly high of 1.3842, closing it a handful of pips below the level. The impressive U-turn had no particular catalyst but speculative interest moving away from the greenback and jumping into high-yielding assets. The fact that the pair settled above the 1.3800 threshold opens the door for another leg north this week.

Meanwhile, the coronavirus vaccine rollout continues in the kingdom, with the number of new daily contagions averaging 2,000 in the past week. The number of new deaths, however, has decreased sharply, down to 34 per day, according to the latest reports. The path to normal continues in the kingdom, providing it with an economic advantage. The UK macroeconomic calendar has nothing to offer until next Tuesday when the country will publish employment-related data.

GBP/USD short-term technical outlook

The GBP/USD pair has turned bullish according to the daily chart, rising sharply after meeting buyers around a mildly bullish 100 SMA and settling well above the 20 SMA. Technical indicators have picked up after testing their midlines, maintaining their positive slopes although within familiar levels. In the 4-hour chart, the bullish potential is stronger, as the Momentum indicator heads north almost vertical, while the RSI advances around 63. Also, the pair closed above its 200 SMA, although it would need to extend its advance to confirm the bullish breakout.

 Support levels: 1.3805 1.3760 1.3715

Resistance levels: 1.3845 1.3890 1.3930

View Live Chart for the GBP/USD

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.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD depressed near a fresh weekly low at 1.2065

EUR/USD lost the 1.2100 mark with US inflation data, holding near its daily lows as demand for high-yielding assets receded. The greenback has room to continue rallying.


GBP/USD extends slump sub-1.4100 as dollar rallies

GBP/USD has  extended its decline after US CPI beat estimates with 4.2% while Core CPI came out at 3%. Earlier, UK GDP beat expectations with -1.5%. Volatility is rising.


XAU/USD tests $1,820 as USD capitalizes on US CPI data

The XAU/USD pair fluctuated wildly in the early American session as investors assessed the latest inflation report from the US. After spiking to a daily high of $1,843, the pair reversed its direction and dropped to $1,820 area.

Gold News

BTC may drop to $34,000, taking the rest of the market with it

Bitcoin price defining a bearish top formation after weeks of indecision. Ethereum price blitzes bears with steady price momentum. Ripple price fails pattern test, poised for further losses.

More Crypto News

Inflation and the dollar: Is the connection as direct as it seems?

US inflation soared in April and so did market volatility. Treasury rates rose, the dollar followed and equities dropped for a second day.  The Fed insists prices increases are temporary but behind the pandemic base effect commodity prices are sharply higher and wages are rising. 

Read more