GBP/USD: Poised to surpass critical resistance at 1.3810

GBP/USD has been benefiting from dollar weakness to advance toward 1.38. According to FXStreet’s Analyst Yohay Elam, the cable is set to surge above the critical 1.3810 resistance.  

The possibility of mixing vaccines may strengthen Britain’s resilience to supply shocks

“Mix and match – the experiment to combine doses from different COVID-19 vaccines is expanding from AstraZeneca and Pfizer to Moderna and Novavax. If it results in satisfactory immunization – or even greater protection – it could help Britain extend its vaccination campaign and prevent supply shocks from specific jabs.”

“The greenback has come under pressure after US inflation figures only met expectations – core prices were up 1.6% yearly in March – and failed to rally as some had anticipated. That means the central bank is in no rush to raise rates.”

“Jerome Powell, Chair of the Federal Reserve, is set to speak later in the day and he may laud these developments, reiterating his commitment to keeping rates low and supporting the economy.”

“The 4-hour chart shows that cable has been rejected at 1.3810, a line that capped it twice in late March – making it a critical barrier. Above 1.3810, the next cap is at 1.3850, a swing high from late March, and then 1.3920.”

“Support awaits at 1.3780, a peak from last week, followed by 1.3750 and 1.37.”