Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3758.. Although cable gained fm 1.3726 in Asia to 1.3770 (Reuters) in Europe, price met renewed selling n fell to 1.3695 in NY on cross-selling in sterling b4 recovering to 1.3757 on USD's weakness, then 1.3762 today.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD's demand following free fall in global stocks, sterling's rally to as high as 1.2812 (Jun) on broad-based USD's weakness, then to an 8-month peak of 1.3482 in Sep suggests a major bottom is in place. Although cable rallied strongly to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a 34-month peak at 1.4241 in late Feb, subsequent fall to 1.3670 Fri signals top is made n stronger retracement to twd 1.3566 would be seen. Read more...
GBP/USD Forecast: Sterling set to surge above critical resistance, with additional shots in the arm
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. That is now the case in Europe.
Johnson & Johnson announced it is halting deliveries of its jabs to European countries following the US FDA's investigation into a potential link between rare blood clots and vaccines. The UK is already ahead in inoculating its population and satisfactory results from the trial could further boost it. Read more...
GBP/USD Analysis: Post-US CPI USD selloff helped defend 100-DMA, for the time being
The GBP/USD pair witnessed some intraday selling on Tuesday, albeit showed some resilience below the 1.3700 mark and recovered around 75 pips from daily lows amid some heavy US dollar selling. The British pound initially was weighed down by a rather unimpressive UK GDP report, which showed that the economy expanded by 0.4% in February as against 0.6% anticipated. This comes on the back of a possible link between the AstraZeneca coronavirus vaccine and a rare blood clotting disorder that could delay the UK government's plan to reopen the economy. The pair lost some additional ground after the Bank of England (BoE) announced that Chief Economist Andy Haldane will quit his position and step down from the Monetary Policy Committee (MPC) after June's meeting. Read more...
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