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British Pound (GBP) Price Outlook: GBP/USD Strong, Breaks Above Resistance

British Pound (GBP) Price Outlook: GBP/USD Strong, Breaks Above Resistance

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GBP price, news and analysis:

  • GBP/USD is well placed to hit the 1.40 level in due course after overcoming several trendline resistance levels.
  • The Pound continues to benefit from a gradual reopening of the UK economy, the success of the country’s vaccination program and talk of the UK nearing “herd immunity” against Covid-19.
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GBP/USD nears 1.40

GBP/USD continues to strengthen and looks ready to challenge the psychologically important 1.40 level, although after its recent advance it will likely be hit by profit-taking first. Note too that just under 1.40 and just above it lie the highs reached on June 23 and June 24, and they make the 1.40 mark even more important as a resistance level.

GBP/USD Price Chart, Four-Hour Timeframe (May 31 – July 29, 2021)

Source: IG (You can click on it for a larger image)

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Note too that Sterling is gaining ground against several other major currencies including the Euro, the Japanese Yen and the Australian Dollar.

Behind its strength lie the reopening of the UK economy and the perceived success of its vaccination program. Moreover, reports suggest that the UK may finally be nearing the Holy Grail of herd immunity, although the latest figures show that the number of Covid-19 cases recorded in the UK has risen after seven consecutive days of falls.

GBP/USD Bullish
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Change in Longs Shorts OI
Daily 2% 4% 4%
Weekly -17% 14% 1%
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--- Written by Martin Essex, Analyst and Editor

Feel free to contact me on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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