GBP/USD seems to have all the ingredients to extend its gains

The triple-top has been breached – finally – and GBP/USD is now trading above the psychological barrier of 1.40 and at the very best February 25, roughly ten weeks ago. There are three main upside drivers for the currency pair, which could continue underpinning its rally, FXStreet’s Analyst Yohay Elam briefs.

Scotland’s elections, the united kingdom accelerated reopening and weak US jobs figures are being the move
“The Scottish National Party (SNP) won the regional elections north of the border but fell in need of an majority . While it continues pushing for a replacement independence referendum – backed by the pro-plebiscite Greens – its lack of a sweeping victory has resulted in some relief for sterling.”

“UK Prime Minister Boris Johnson is about to deliver a press release announcing new measures associated with Britain’s reopening. The vaccination campaign has dramatically cut COVID-19 cases and a few speculate that the govt could accelerate the timeline for reopening.”

“American hiring fell far in need of expectations – only 266,000 jobs were added in April, against nearly a million expected. While seasonal adjustments may are skewed thanks to the pandemic, the markets’ verdict is obvious – the Federal Reserve System is in no rush to taper bond buying nor raise rates. The resulting sell-off within the dollar is extending to Monday.”

“The next level to observe on the upside is 1.4080, which provided support in late February. it’s followed by 1.4140, a line then by 1.4180, a swing high before cable began its climbdown.”

“Support is at 1.4010, the broken triple-top, followed by 1.3980, 1.3930 and 1.3860.”

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