With the market still climbing, the GBP/USD price is profiting from the previous Friday session. As a result, we expect the pair to close the week on a higher note.
At the time of writing, GBP/USD is trading at 1.3847, up 0.08% on the day.
After the yields on 10-year Treasury notes plummeted, the US Dollar Index (DXY), which tracks the dollar’s value against its six major rivals, is reversing its direction.
The economic recovery remains tinged with pessimism due to the rise in Coronavirus cases. On Thursday, Joe Biden announced an anti-vaccine movement. It was his goal to combat vaccine resistance in America. Biden and Xi’s conversation was encouraging.
The number of initial claims for unemployment in the US has fallen to a new low. A disappointing NFP estimate the week before resulted in fewer applications than anticipated.
However, after optimism over the expectation that the Bank of England (BOE) would raise interest rates in the first half of 2022, the pound recovered earlier than expected.
The most influential party in Northern Ireland (NI) also stated that post-Brexit tensions were to blame for limited profits.
UK trade balance, industrial production, and US producer price index data are considered important for investors.
GBP/USD Price Technical Analysis: Key SMAs Supporting The Upside
(Click on image to enlarge)
GBP/USD 4-hour price chart
The GBP/USD price managed to break above the key SMAs, standing near the mid-1.3800. As a result, the pound bulls may look to extend rally towards 1.3900 and above. Although the average daily range so far is only 26%, the pair is likely to find some traction during the London session. The price is now consolidating gains while the volume is drying up. Any breakout will determine the next directional bias.
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