GBP/USD: Progress on US stimulus is key to another move higher

GBP/USD has been holding onto high ground amid Britain’s rapid vaccination campaign. As FXStreet’s Analyst Yohay Elam notes, sterling needs a Biden boost set to break above the bullish triangle.

Key quotes

“While Britain’s coronavirus policy deserves considerable criticism, its rapid immunization has been running strong and even accelerating. The government has already surpassed its 500,000 jabs/day target.” 

“President Joe Biden met a group of ten Republican senators that offered a stimulus plan worth $600 billion – less than a third of his $1.9 trillion package. Will Democrats and Republicans repeat the neverending talks seen in the latter part of 2020 or will they strike a quick deal? The safe-haven dollar would fall if there is a quick deal and rise on reports of protracted talks.” 

“Pound/dollar is trading in an ascending triangle, which is a bullish pattern according to technical textbooks.”

“Support awaits at 1.3650, where the uptrend support line hits the price. It is followed by 1.3610 and 1.2520, stepping stones on the way up. Some resistance awaits at 1.3720, a previous peak, and then by 1.3762, 2020 high.”