GBP price, news and analysis:
- GBP/USD has now recovered all the ground lost last week, suggesting again that last week’s losses represented a healthy correction within an uptrend and that the move higher could well continue.
- The latest move reflects a weaker US Dollar prompted by a decline in Treasury yields from their recent highs.
GBP/USD resumes uptrend
The uptrend in GBP/USD, in place since last September, looks to be resuming after last week’s correction lower – with the chart suggesting further gains to come. The latest move reflects a weaker US Dollar, which is suffering from a move lower in Treasury yields after their recent gains.
GBP/USD Price Chart, Daily Timeframe (September 14, 2020 – January 13, 2021)
Source: IG (You can click on it for a larger image)
Talk of an economic recovery later this year, hopes that President-elect Joe Biden will ramp up the US coronavirus vaccine program and the prospect of more fiscal stimulus are all dragging on the safe-haven US Dollar.
Note, though, that GBP is also independently firm, strengthening against currencies such as the Canadian Dollar, the New Zealand Dollar, the Japanese Yen and the Australian Dollar.
GBP/AUD Price Chart, Daily Timeframe (September 14, 2020 – January 13, 2021)
Source: IG (You can click on it for a larger image)
Check out my analyst’s pick from last week on GBP/AUD and GBP/NZD
We look at currencies regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts
--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
