GBP/USD seems to have all the ingredients to extend its gains

The triple-top has been breached – finally – and GBP/USD is now trading above the psychological barrier of 1.40 and at the highest February 25, roughly ten weeks ago. There are three main upside drivers for the currency pair, which could continue underpinning its rally, FXStreet’s Analyst Yohay Elam briefs.

Scotland's elections, the UK accelerated reopening and weak US jobs figures are being the move

“The Scottish National Party (SNP) won the regional elections north of the border but fell short of an absolute majority. While it continues pushing for a new independence referendum – backed by the pro-plebiscite Greens – its lack of a sweeping victory has resulted in some relief for sterling.”

“UK Prime Minister Boris Johnson is set to deliver a statement announcing new measures related to Britain's reopening. The vaccination campaign has dramatically cut COVID-19 cases and some speculate that the government could accelerate the timeline for reopening.”

“American hiring fell far short of expectations – only 266,000 jobs were added in April, against nearly one million expected. While seasonal adjustments may have been skewed due to the pandemic, the markets' verdict is clear – the Federal Reserve is in no rush to taper bond buying nor raise rates. The resulting sell-off in the dollar is extending to Monday.”

“The next level to watch on the upside is 1.4080, which provided support in late February. It is followed by 1.4140, a battle line, and then by 1.4180, a swing high before cable began its climbdown.”

“Support is at 1.4010, the broken triple-top, followed by 1.3980, 1.3930 and 1.3860.”