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  • GBP/USD is back on the bids amid risk-on mood, weaker DXY.  
  • The UK PM Johnson eases lockdown but puts foreign travel on hold.
  • Focus shifts to the US ISM Services PMI amid a quiet Easter Monday.

Fresh bids emerged for GBP/USD, allowing a bounce back above the 1.3900, as the bulls look to revisit three-week highs.

The cable remains at the mercy of the US dollar price action so far this Tuesday’s trading, initially reaching multi-week highs at 1.3915 amid the overnight slump in the greenback. However, the sellers returned after the risk sentiment deteriorated and revived the haven demand for the US dollar.    

Resurfacing concerns over China’s credit growth combined with skepticism on the strength of the US economic recovery dampened the investors’ sentiment in Asia, lifting the greenback from lower levels.

Heading towards the European opening bells, the GBP bulls have regained control, as the traders hit their desks and react positively to the UK Prime Minister Boris Johnson’s confirmation of further lockdown easing in England.

Johnson confirmed restaurants, pubs and shops will open again as England’s lockdown is eased next week although said that the earliest date for resuming non-essential international travel will be May 17.

Further, higher vaccination rates  in the Kingdom underpins the sentiment around the pound. According to the latest data from the UK Health Services, more than 5 million people in the country have received their second dose of a coronavirus (COVID-19) vaccine.

In the day ahead, the sentiment around the US dollar will continue to dominate the major amid a data-empty UK docket.

GBP/USD technical levels