GBP/USD Forecast: Yellen may give sterling a shot in the arm, critical resistance eyed
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- GBP/USD has been edging higher amid an improved market mood.
- The UK's ramped-up vaccination campaign is boosting sterling.
- Tuesday's four-hour chart is painting a mixed picture.
Is the big break above 1.37 coming? That heavily depends on Janet Yellen, who is making a comeback as Treasury Secretary nominee after her sting as Chairman of the Federal Reserve. In her prepared remarks to Congress, Yellen stated that "now is the time to spend" – echoing President-elect Joe Biden's words.
Will the new administration raise taxes or increase the debt? If Yellen suggests closing loopholes or other measures, stocks could fall and the dollar would rise. However, the former Chair of the Federal Reserve may opt for more debt – which would receive funding from Jerome Powell, her successor at the Fed. She will probably stray away from suggestion monetary financing – Yellen is experienced at such testimonies – but markets may have their interpretations.
There are additional topics to consider in her all-important public appearance.
See Yellen Testimony Cheat Sheet: Three factors set to rock stocks and the dollar
In the meantime, coronavirus continues raging on both sides of the Atlantic, with some tentative signs of peaking. More importantly, the UK has been extending its vaccination campaign and is inoculated nearly 7% of its population. The rate is roughly half of that in America. Britain's lead in vaccination gives it an edge.
Brexit refuses to die as the EU and the UK continue deliberating the future of services, and parliament discusses the bill. However, no market-moving developments are likely.
Overall,. Yellen and UK's vaccines are high on the agenda.
GBP/USD Technical Analysis
Pound/dollar is making tentative signs of breaking above 1.3615, which provided support last week and serves as a separator of ranges. On its way up, cable broke above the 50 and 100 Simple Moving Averages. a bullish sign.
Above 1.3615, the next level to watch is 1.3670, a peak in early 2021, followed by the yearly high of 1.3705.
Support awaits at 1.3520, the weekly low, and then by 1.3450 and 1.3430, stepping stones on the way up.
More GBP/USD Price Forecast 2021: Cable braces for calendar comeback amid three exits
- GBP/USD has been edging higher amid an improved market mood.
- The UK's ramped-up vaccination campaign is boosting sterling.
- Tuesday's four-hour chart is painting a mixed picture.
Is the big break above 1.37 coming? That heavily depends on Janet Yellen, who is making a comeback as Treasury Secretary nominee after her sting as Chairman of the Federal Reserve. In her prepared remarks to Congress, Yellen stated that "now is the time to spend" – echoing President-elect Joe Biden's words.
Will the new administration raise taxes or increase the debt? If Yellen suggests closing loopholes or other measures, stocks could fall and the dollar would rise. However, the former Chair of the Federal Reserve may opt for more debt – which would receive funding from Jerome Powell, her successor at the Fed. She will probably stray away from suggestion monetary financing – Yellen is experienced at such testimonies – but markets may have their interpretations.
There are additional topics to consider in her all-important public appearance.
See Yellen Testimony Cheat Sheet: Three factors set to rock stocks and the dollar
In the meantime, coronavirus continues raging on both sides of the Atlantic, with some tentative signs of peaking. More importantly, the UK has been extending its vaccination campaign and is inoculated nearly 7% of its population. The rate is roughly half of that in America. Britain's lead in vaccination gives it an edge.
Brexit refuses to die as the EU and the UK continue deliberating the future of services, and parliament discusses the bill. However, no market-moving developments are likely.
Overall,. Yellen and UK's vaccines are high on the agenda.
GBP/USD Technical Analysis
Pound/dollar is making tentative signs of breaking above 1.3615, which provided support last week and serves as a separator of ranges. On its way up, cable broke above the 50 and 100 Simple Moving Averages. a bullish sign.
Above 1.3615, the next level to watch is 1.3670, a peak in early 2021, followed by the yearly high of 1.3705.
Support awaits at 1.3520, the weekly low, and then by 1.3450 and 1.3430, stepping stones on the way up.
More GBP/USD Price Forecast 2021: Cable braces for calendar comeback amid three exits
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.