GBP/USD: Yellen can trigger the big break above 1.37

GBP/USD is holding above 1.36 amid an improved market mood. The UK’s ramped-up vaccination campaign is boosting the pair and Treasury Secretary nominee Janet Yellen may give the cable, which is eyeing critical resistance at 1.37, a shot in the arm, FXStreet’s Analyst Yohay Elam reports. 

See – US: Yellen to avoid comments on the US dollar – Rabobank

Key quotes

“If Yellen suggests closing loopholes or other measures, stocks could fall and the dollar would rise. However, the former Chair of the Federal Reserve may opt for more debt – which would receive funding from Jerome Powell, her successor at the Fed. She will probably stray away from suggestion monetary financing but markets may have their interpretations.”

“Coronavirus continues raging on both sides of the Atlantic, with some tentative signs of peaking. More importantly, the UK has been extending its vaccination campaign and is inoculated nearly 7% of its population. The rate is roughly half of that in America. Britain’s lead in vaccination gives it an edge.” 

“Pound/dollar is making tentative signs of breaking above 1.3615, which provided support last week and serves as a separator of ranges. On its way up, cable broke above the 50 and 100 Simple Moving Averages, a bullish sign.” 

“Above 1.3615, the next level to watch is 1.3670, a peak in early 2021, followed by the yearly high of 1.3705. Support awaits at 1.3520, the weekly low, and then by 1.3450 and 1.3430, stepping stones on the way up.”