GBP/USD needs to break above 1.3710 to extend the rally

The British pound is the strongest currency, with GBP/USD poised to close 2020 at its highest in over two years. The cable traded as high as 1.3685 as bulls dominate despite coronavirus concerns, FXStreet’s Chief Analyst Valeria Bednarik informs.

Key quotes

“On Wednesday, the United Kingdom announced tougher restrictive measures amid record contagions in the country. The Midlands, North East, parts of the North West and parts of the South West are among those escalated to tier four. News that the government approved the emergency use of the AstraZeneca vaccine partially overshadowed the discouraging covid-related headlines.”

“The broad dollar’s weakness adds to the bullish case of the pair. In the near-term, and according to the 4-hour chart, the risk remains skewed to the upside, despite overbought readings. Another leg north is to be expected on a break above 1.3710, the immediate resistance level.”

See – GBP/USD Price Forecast 2021: Cable braces for calendar comeback amid three exits