Closes in mid-1.3800 amid weak US dollar and holiday mood

  • GBP / USD shows three-day winning streak, refreshes one-week high, despite sluggish markets on the Good Friday holiday.
  • UK government offers £ 400million relief for Glastonbury Festival, Prime Minister Johnson worries about covid conditions in France.
  • The UK’s MHRA finds more cases of blood clotting led by AstraZeneca, but Pfizer has shown a good immune response in over 80 years after two doses.
  • The US dollar struggles to weather Wednesday’s losses ahead of key NFP data.

GBP / USD is picking up bids around 1.3850, the highest since March 23, early Friday. Although the Good Friday holiday restricts cable movements, the continued weakness of the US dollar and the UK government’s ability to celebrate the national holiday, coupled with recently bullish data, appears to be favoring the bulls ahead of major US wage data non-agricultural (NFP).

While staying on its revival momentum, the UK government has announced yet another relief to residents by helping “2,700 museums, theaters, cinemas and art venues to receive a share of £ 400 million in grants and loans“? ? by Reuters.

Not only is pressure from Conservative leaders for more tax relief helping to overcome the pandemic, but the UK’s vaccine and unblock optimism are also boosting GBP / USD prices. After announcing major relief to Britons earlier in the week, the government is gradually easing restrictions related to the coronavirus (COVID-19) to help them celebrate the festivities at home. What’s more, the news shared by Reuters also favors sterling buyers by saying that “about 98% of the 80 to 96 year olds who received two doses of Pfizer’s coronavirus vaccine had a strong antibody response, adding to the evidence that it can help protect those most at risk from severe or fatal COVID-19. “??

It is worth mentioning that UK data, be it GDP or PMI, has recently presented bullish results of government efforts and is adding to the GBP / USD bullish momentum.

On the contrary, the UK Medicines and Health Products Regulatory Agency (MHRA) has identified 30 cases of rare blood clot events after using the AstraZeneca COVID-19 vaccine, 25 more than the previously reported agency. . The same joins the fight between Britain and China and Prime Minister Boris Johnson’s concerns about the resurgence of covid in France to weigh on sentiment.

It should be noted, however, that Good Friday dominates foremost and the US dollar continues to linger, despite slow movements, which in turn holds hope for buyers.

Continuing, given the high hopes raised by the US employment figures for March, any disappointment will result in higher costs and could rekindle the strength of the US dollar. However, today’s inactive market conditions can tame bears in this instance.

Read: March Sneak Peek into US Non-Farm Wages: Optimism and Evidence This Time?

Technical analysis

Given normal RSI conditions and the marked lower formation over the past two weeks, the GBP / USD is expected to overcome the key obstacle around 1.3840-45 including a five week resistance line, SMA of 21 days and 50 days. . While a daily close above 1.3845 will propel the quote to the 1.4000 level, failures to cross will welcome sellers only after breaking the previous month’s low at 1.3670. However, pullbacks towards the 1.3700 level cannot be ruled out.

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