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The GBP/USD pair has been hitting new multi-year highs, driven by dollar weakness. The cable could surge above 1.38 as the UK continue pushing immunization with full force. Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“President Joe Biden will likely pass most of his desired coronavirus relief package – raising the need to issue more debt bonds, resuming the downtrend in returns and the greenback. However, the current distraction has been prompting a pause.”

“The pound is well-positioned to take advantage of the dollar’s descent, thanks to Britain’s vaccination drive. The UK has already jabbed around 18% of its population and is on course to hit the government’s goal of reaching around 15 million people by February 15.” 

“The Bank of England’s optimism is another positive factor for the pound. The UK releases growth figures next week, and they expectations for robust figures are supporting sterling.”

“Immediate resistance is at 1.3798, the new 2021 peak. It is followed by 1.3830, 1.39 and 140 – all dating back to 2018. Support is at 1.3760, a previous 2021 peak, followed by 1.3680 and 1.3565, which both served as cushions in recent days.”