GBP/USD Set To Suffer From Biden Going Big Again, Upbeat US Jobs Data

Here are the upcoming top US events this week:

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GBP/USD technical analysis

Pound/dollar has slipped below the uptrend support line that accompanied it since the autumn of 2020 and also dropped under the 50-day Simple Moving Average. And while momentum is off its lows, it remains to the downside. All in all, bears are gradually taking over.

Initial support is at the March low of 1.3670. It is followed by 1.3550, a stepping stone on the way up from February. Another such point is 1.3460, which dates back to January. Further down, 1.3300 is eyed.

Looking up, 1.3775 remains a battle line after separating ranges earlier in the year. It is followed by 1.3810, which provided support in March and nearly converges with the 50-day SMA. The next significant cap is 1.40 – a psychologically significant line of resistance.

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GBP/USD sentiment

Dollar strength will likely continue for another week and overwhelm any recovery in sterling – even if Britain’s vaccination campaign remains on track.

The FXStreet Forecast Poll is showing that the currency pair may wobble in the same lower range in the next week before staging a rally back to previous levels. The long-term average target underwent an upgrade.

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