One of the strongest currencies in 2021 is the GBP and the GBP/USD, the one pair that outperformed, together with the AUD/USD. Brexit fears vanished in the face of the exemplary vaccination efforts in the United Kingdom and the prospect of faster economic growth when compared to the European Union or other parts of the world.
If we add to this the prospect of new investments in a country that just left the European Union, the chances are that the British Pound will remain bid on any dip. As for the GBP/USD pair, it remains to be seen what the dollar will do for the rest of the month and in the month to follow.
The United Kingdom has just revealed a multi-step plan of ending the lockdown. If it succeeds, it is estimated that by the summer, most of the economic activity and the services industry too will be back to normal. Therefore, the GBP pairs trade in anticipation of such a moment.
GBP/USD Technical Analysis
The technical picture shows the robustness of the GBP’s rally. The market keeps forming higher highs and higher lows, and that is enough to stay on the long side. Bears may want to wait for the price to break below the lower edge of the channel before going short with a stop at the highs and a take profit below 1.3750.
GBP/USD Price Forecast