GBP/USD: Last consumer figure for the week to trigger a fall below triple bottom

GBP/USD has reversed its gains as the dollar benefits from upbeat US data. In the view of FXStreet’s Analyst Yohay Elam, the last economic release for the week may outweigh Britain’s vaccine success.

Dollar strength outweighs other forces – and for good reasons

“On Friday, the last consumer figure for the week is eyed – the University of Michigan’s preliminary Consumer Sentiment Index for April. Similar to this week’s other releases, the economic calendar is pointing to a positive read, and real estimates could even be higher. If shoppers show optimism in this survey, it would give the greenback another boost. It has the final word.”

“The UK continues benefiting from its gradual reopening, with Scotland joining England in announcing the removal of some restrictions. However, that is mostly priced into the pound. Moreover, America’s immunization effort is also moving at full speed, defying concerns of an imminent slowdown. Nearly 1% of the population receives a jab every day and all Americans will be offered vaccines from Monday.”

“Support awaits at the daily low of 1.3718, followed by the critical triple-bottom of 1.3670. Losing that line would open the door to a rapid fall toward 1.36.”  

“Some resistance is at 1.3750, a support line from earlier in the week, then followed by 1.3780 and 1.3810.”