GBP/USD has been rising amid an upbeat market mood and falling US yields but US spending and overbought conditions may (temporarily) stop sterling, Yohay Elam, an Analyst at FXStreet, briefs. A refocus on US infrastructure plans may boost the dollar “The main factor boosting cable comes from dollar weakness, which is suffering a double-whammy of falling US Treasury yields and a risk-on mood in markets. However, this trend may reverse. The world is cheering America’s emergence from the coronavirus crisis, with robust US consumption seen as a catalyst for global growth.” “Change may come from developments on President Joe Biden’s infrastructure spending plans. If his $2.25 trillion expenditure drive gets a boost, it could cause a sell-off in bonds, thus pushing yields up and carrying the greenback higher for a ride. Moreover, the president wants to enact corporate tax hikes, something that Wall Street dislikes. If the current market rally comes to a halt, the safe-haven dollar may see fresh demand.” “Pound/dollar is benefiting from upside momentum on the 4-hour chart and has surpassed the 200 Simple Moving Average on its way up. However, the Relative Strength Index (RSI) is tackling the 70 level – thus entering overbought conditions.” “The crucial battle line is 1.3920, which was a peak in early April. It is followed by 1.3940 and by the psychological barrier of 1.40.” “Support awaits at 1.3850, which held the pair back before its recent rally, and then by 1.3810 and 1.3780.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NZD/USD renews monthly highs near 0.7200 amid persistent USD weakness FX Street 2 years GBP/USD has been rising amid an upbeat market mood and falling US yields but US spending and overbought conditions may (temporarily) stop sterling, Yohay Elam, an Analyst at FXStreet, briefs. A refocus on US infrastructure plans may boost the dollar "The main factor boosting cable comes from dollar weakness, which is suffering a double-whammy of falling US Treasury yields and a risk-on mood in markets. However, this trend may reverse. The world is cheering America's emergence from the coronavirus crisis, with robust US consumption seen as a catalyst for global growth." "Change may come from developments on President Joe Biden's… 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.