- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to recovery gains near 1.0850 ahead of Fedspeak
EUR/USD trades in positive territory near 1.0850 on Friday following a four-day slide. China's stimulus optimism and a broad US Dollar correction help the pair retrace the dovish ECB decision-induced decline. All eyes remain on the Fedspeak.
GBP/USD pares UK data-led gains at around 1.3050
GBP/USD is trading at around 1.3050 in the second half of the day on Friday, supported by upbeat UK Retail Sales data and a pullback seen in the US Dollar. Later in the day, comments from Federal Reserve officials will be scrutinized by market participants.
Gold at new record peaks above $2,700 on increased prospects of global easing
Gold (XAU/USD) establishes a foothold above the $2,700 psychological level on Friday after piercing through above this level on the previous day, setting yet another fresh all-time high. Growing prospects of a globally low interest rate environment boost the yellow metal.
Crypto ETF adoption should pick up pace despite slow start, analysts say
Big institutional investors are still wary of allocating funds in Bitcoin spot ETFs, delaying adoption by traditional investors. Demand is expected to increase in the mid-term once institutions open the gates to the crypto asset class.
Canada debates whether to supersize rate cuts
A fourth consecutive Bank of Canada rate cut is expected, but the market senses it will accelerate the move towards neutral policy rates with a 50bp step change. Inflation is finally below target and unemployment is trending higher, but the economy is still growing.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.