GBP/USD has collapsed as the dollar soared with bond-yields but the cable may have room to recover as markets rebalance at the end of the month, Yohay Elam, an Analyst at FXStreet, reports.
“February is drawing to an end and money managers could undo some of the recent moves to balance their books.
“The Senate parliamentarian rejected the hike in the minimum wage, complicating the passage of the stimulus bill and perhaps limiting its scope.”
“The Core PCE is set to decelerate to 1.4% yearly, a reminder that prices are not going anywhere fast and that fears of overheating may be exaggerated. That would allow yields to retreat, dragging the dollar lower.”
“Support awaits at 1.39, the daily low, and then by 1.3860. Resistance is at the round 1.40 level, followed by 1.4025, the daily high.”