Title: GBP/USD strengthens to over one-week tops, bulls eyeing a move beyond 1.3800
Jul 26, 2021 11:52:49 AM GMT
The GBP/USD pair held regular close to one-week tops thru the mid-European session, with bulls now looking ahead to a sustained circulate past the 1.3800 round-determine mark.
Following Friday's modest pullback, the GBP/USD pair stuck a few sparkling bids on the primary day of a brand new buying and selling week and constructed on its current robust leap from the bottom stage due to the fact that early February. The uptick becomes subsidized through a broad-primarily based totally US greenback weak point and regarded alternatively unaffected through Brexit woes/COVID-19 jitters.
The ongoing unfold of COVID-19 throughout America fueled fears approximately renewed regulations on enterprise and social lifestyles and acted as a headwind for the USD. Apart from this, a pointy intraday fall in the US Treasury bond yields – brought on through the risk-off impulse in the markets – become visible as some other component undermining the greenback.
The bid tone surrounding the GBP/USD pair ought to in addition be attributed to a few cross-pushed electricity stemming from an intraday decline the EUR/GBP cross. The mixture of helping factors, to a bigger extent, helped offset developing issues approximately the EU-UK deadlock over the Northern Ireland Protocol of the Brexit deal.
Meanwhile, the essential backdrop hasn't been supportive for bullish traders. Moreover, there are not any primary market-shifting monetary facts due for launch on Monday, both from the United Kingdom or America. This in addition makes it prudent to await a few robust follow-thru shopping for earlier than confirming that the GBP/USD pair has bottomed out already.