The GBP/USD continues a steady but laborious climb towards the 1.4000 mark, etching out slim gains on the day as the US Dollar struggles to find demand against risky currencies this Thursday. Buoying the Pound remains the effective rollout of its vaccination program against the coronavirus, supported by data that shows that infection rates are slowing down across the UK.
An earlier decline in US Treasury yields, as well as a downbeat core CPI report on Wednesday, continues to leave the USD on offer for most of the day. Even with long-term US bond yields reversing earlier losses, the greenback has only been able to make progress against the metals and not the risky currencies.
The GBP/USD is up 0.28% on the day as of the time of writing.
Technical Outlook for the GBP/USD
The pair has violated the 1.39484 resistance, with a 3% penetration close above this level required to confirm the breakout. This move would open the door towards 1.40051. This move would also take out the upper boundary of the smaller descending channel. Uncapping of the 1.4005 price level brings in 1.41535 into the picture.
On the flip side, a change in the short-term trend of the GBP/USD requires a breakdown of the larger channel, targeting 1.37917 and 1.37463. Additional support targets lie at 1.36117 and 1.35134
GBP/USD Daily Chart