GBP price, news and analysis:
- GBP/USD has nudged above the 1.38 level, gaining from ‘risk on’ sentiment that continues to weaken the US Dollar.
- Hopes for a global economic recovery and positive US corporate earnings are still outweighing suggestions that the risk rally has been overdone, and that should lift GBP/USD further towards the 1.40 level medium-term.
GBP/USD strength to continue
GBP/USD has nudged above the 1.38 level and its trend higher, prompted by a persistently weak US Dollar, looks to be propelling the pair towards the 1.40 level medium-term – though a correction could occur before that target is reached.
GBP/USD Price Chart, One-Hour Timeframe (January 15 – February 10, 2021)
Source: IG (You can click on it for a larger image)
Positive US corporate earnings and hopes for a US economic recovery continue to drive the US Dollar lower despite warnings that the risk rally may now be overdone, benefiting currencies like Sterling.
In recent days, the Pound and the Euro have marched ahead in lockstep, leaving EUR/GBP largely unchanged. GBP/JPY is also moving sideways but GBP/AUD, GBP/NZD and GBP/CAD have all made modest gains over the last couple of days, suggesting independent Sterling strength.
| Change in | Longs | Shorts | OI |
| Daily | 3% | -7% | -3% |
| Weekly | 4% | -10% | -5% |
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--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
