GBP/USD has been recovering as the US dollar retreats alongside yields. Biden’s stimulus and an upcoming US auction will likely send the dollar back up. Tuesday’s four-hour chart is showing bears are still in the lead. The royals have more damage control to do than GBP/USD bulls, who are able to lift their heads by staging a recovery. However, like the monarchy, the troubles are probably not over. Cable has been benefiting from the dollar’s descent. China intervened in markets to push bolster stocks and the ensuing risk-on mood is weighing on the safe-haven dollar. More importantly, investors are buying US bonds at lower prices, and the resulting fall in yields is pushing the greenback down as well. Can this continue? The US House of Representatives is on course to pass the Senate’s version of the covid relief bill – worth around $1.9 trillion. President Joe Biden will then sign it into law, launching vast government expenditure that means more debt issuance and potentially rising returns on Treasuries. The US is auctioning three-year bonds on Tuesday and ten-year Treasuries on Wednesday – with the latter closely followed by markets. A higher return may trigger the next leg up for the greenback and end the current calm. Sterling has been able to put up a fight – better than the euro’s – thanks to Britain’s vaccination campaign and also relatively hawkish comments from the Bank of England. Governor Andrew Bailey reiterated that negative rates are basically off the agenda. All in all, while the pound has weathered the storm better than other currencies, it is far from immune to the next dollar surge. GBP/USD Technical Analysis Bulls are eyeing 1.3950, which is where the 100 Simple Moving Average hits has been converging with the price in recent days – and it also capped cable in mid-February. By reaching 1.3950, momentum would likely turn positive. At the moment, it is still to the downside and GBP/USD trades below the 50 SMA and only above the 200 SMA. Immediate resistance awaits at 1.39, followed by 1.3915, where the 50 SMA hits the price. Beyond 1.3950, the recent high of 1.4015 is the next level to watch. Some support is at 1.3825, which provided support in mid-February, and then at 1.3775 and 1.3745. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Malaysia: Unemployment rate ticked higher in January – UOB FX Street 1 year GBP/USD has been recovering as the US dollar retreats alongside yields. Biden's stimulus and an upcoming US auction will likely send the dollar back up. Tuesday's four-hour chart is showing bears are still in the lead. The royals have more damage control to do than GBP/USD bulls, who are able to lift their heads by staging a recovery. However, like the monarchy, the troubles are probably not over. Cable has been benefiting from the dollar's descent. China intervened in markets to push bolster stocks and the ensuing risk-on mood is weighing on the safe-haven dollar. More importantly, investors are buying… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.