The GBP/USD price soared to the highest level in three years as traders cheered the current vaccinations in the UK and the fading chances of negative interest rates in the UK. The pair is trading at 1.3940, which is 2.70% higher than where it started the year.
GBP/USD news: The pound sterling is rising because of the ongoing vaccination efforts in the UK. Data by the government showed that the UK economy has already vaccinated more than 15 million people in the past two months. This means that most people will be vaccinated in the next few months.
The GBP/USD is also rising ahead of the important UK CPI numbers that will come out tomorrow. Economists believe that the headline CPI will be relatively muted but that the core CPI will have modest gains. Therefore, in general, most analysts have started ruling-out negative interest rates in the UK.
GBP/USD technical outlook
On the four-hour chart, we see that the GBPUSD price made a bullish breakout on February 9 when it moved above the resistance at 1.3750. Since then, the pair has risen by more than 1.50%. Today, it remains above the 25-day and 15-day moving averages while oscillators like the Relative Strength Index (RSI) have continued rising.
Therefore, the pair will likely continue rising as bulls target the next resistance at 1.4000. This prediction will be invalidated if the price falls below 1.3750.
GBPUSD technical chart