GBP/USD set to tackle 1.40, fundamental picture remains favorable for cable bulls

GBP/USD has been hovering around 1.3950 as markets are torn by mixed virus developments. According to FXStreet’s Analyst Yohay Elam, Sterling is well-positioned to attack 1.40 on the next market upswing.

The next dose of optimism has sterling well-positioned to gain

“US Treasury yields rise from a six-week low has also kept the dollar bid. Will it last? The focus may easily shift back America's economic boom, especially if US jobless claims refrain from leaping back to the previous higher. The decrease from levels above 700,000 to 576,000 last week was a welcome surprise and economists expect a consolidation of this improvement.” 

“The market mood may improve due to an improving virus situation in the US. After several weeks of increasing cases, the curve flattened and has begun turning down. As long as investors do not worry about slowing vaccination rates – partly due to the decision to suspend the usage of Johnson & Johnson's jabs – shares have room to rise and the dollar could fall.”

“The UK is on the verge of reaching 50% of its population with at least one dose of immunization while infections, hospitalizations, and deaths are all declining.”

“Some resistance awaits at the daily high of 1.3950, followed by the fresh April peak of 1.4010. Support is at this week's swing low of 1.3880, followed by 1.3850 and 1.38.”