GBP/USD set to recover as the pound takes advantage of the greenback's weakness

GBP/USD has been struggling by a vaccine snag but Fed Chair Powell's speech may weigh on the dollar, allowing the cable to stabilize, Yohay Elam, an Analyst at FXStreet, reports.

Sterling suffers from vaccine setback, Fed may help it stabilize

“The UK recommended refraining from using AstraZeneca's jab in the under 30s. While Britain is ahead in vaccinating its population against COVID-19, fear that AZ's immunizations may cause blood clots may put off some people from this inoculation and perhaps others.” 

“An updated view from Federal Reserve Chair Jerome Powell is expected later on Thursday. At the International Monetary Fund gathering, Powell will be able to share his views on the recent encouraging jobs figures. These include an increase of nearly one million jobs in March. However, if he reiterates that the bank is here to help out – or ‘not even thinking of raising rates’ – the greenback could fall, allowing cable to recover.” 

“Cable still suffers from downside momentum on the 4-hour chart and has failed to recapture the broken uptrend support line. It is also trading below the 50, 100 and 200 Simple Moving Averages, a bearish sign.”

“Support awaits at the daily low of 1.3720, followed by 1.37, a low point from late March. Resistance is at 1.3780, the daily high, and then by 1.3815, which was a cushion earlier this week.”