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GBP/USD has been retreating amid hopes for a large US stimulus package but Britain’s virus advantage may send sterling higher, Yohay Elam, an Analyst at FXStreet, reports. 

Key quotes

“While the case for robust stimulus remains dollar positive, it is unlikely to pass immediately, allowing for the dollar to take a breather.” 

“The UK’s vaccination drive is gaining pace, with over 17% of the population already having received one short, nearly double America’s 9.1%.” 

“Britain has borne the brunt of the B 1.1.7 strain – aka British variant – while that more contagious version of coronavirus is only beginning to spread in the US. Cases are falling on both sides of the Atlantic, but they may turn back up in America.”

“Some resistance awaits at the daily high of 1.3740, closely followed by the 2021 peak of 1.3752. Further above, 1.3810 and 1.40 are eyed.” 

“Support is seen at 1.3680, where the 50 SMA hits the price. The next cushion is 1.3615, which was a low point last week. The next level to watch is 1.3565, the February trough.”