- Pound extends advance versus a weak US dollar.
- GBP/USD up for the fourth consecutive day, holding above strong resistance.
The GBP/USD broke above 1.3790 and climbed to 1.3797, reaching the highest level since April 2018. It is hovering near the highs, holding onto daily gains and looking at the 1.3800 area.
The pound gained momentum during the American session and rose further versus the dollar and erased losses against the euro. The US dollar remains under pressure but it managed to stabilized for the momentum versus the yen and commodity currencies. The DXY is moving around 90.50/55.
Market participant continues to see as positive developments regarding the COVID-19 vaccine in the United Kingdom. Recent gains add to the ones that followed last week Bank of England meeting. The central bank lowered expectations for negative interest rates, boosting the pound.
From a technical perspective, GBP/USD continues to move within a bullish trend. Despite some overbought readings in technical indicators, no sings of correction are seen. A break above 1.3800 should lead to more gains. On the flip side, a reversal back below 1.3750 could suggest some cable is back to the 1.3600-1.3750 range.
Technical levels
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