GBP/USD resists dollar strength but not for too long
|GBP/USD is under pressure as US growth expectations boost the dollar. The UK's reopening and rapid vaccination campaign are helping sterling hold up but the cable is set to succumb to dollar strength, Yohay Elam, an Analyst at FXStreet, reports.
Key quotes
“Britain's first stage of reopening is a boost to the economy as parents will now be able to work more easily at home, without interruption from their kids. The nation also benefits from its rapid vaccination campaign – one in every three Brits has received protection against COVID-19, and younger age groups are now being included.”
“Sterling is battling with the might of rising US bond yields. Returns on ten-year Treasuries are hovering around 1.60%, the highest since the crisis and buoyed by first upbeat developments. The US Senate passed a modified version of President Joe Biden's $1.9 trillion stimulus package, which is now set for rapid approval by the House.”
“Support awaits at Friday's low of 1.3780, followed by 1.3740, which capped cable back in early February. Further down, 1.3680 is eyed.”
“Resistance awaits at 1.3860, and then by 1.3880 and 1.3930 – all accompanied the pair's recent slide.”
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