The GBP/USD pair rose for the sixth consecutive months in February as investors focused on the strong coronavirus response from the UK. The performance of US yields played an important role. The pair reached a high of 1.4230, which was the highest level since April 2.
GBP/USD news: The British pound rallied in February as the UK continued to ramp-up its vaccine administration. The country has already vaccinated more than 15 million people and is on track to vaccinate millions in the next few months. In February, the BOE governor also said that the Central Bank would not push interest rates to the negative zone.
In March, the GBP/USD will react to the Covid-19 vaccine rollout and the interest rate decision by the Bank of England (BOE) and Fed. The two banks will deliver their rate decision on March 18 and March 17, respectively. Also, the pair will react to the US stimulus package and Rishi Sunak’s statement on stimulus. Further, traders will be watching the ongoing Brexit negotiations on the financial sector.
GBP/USD technical outlook
The weekly chart shows that the GBP/USD price has been on an uptrend recently. It rose to 1.4245 in February, which is slightly below the important resistance at 1.4370. The pair has moved above the 15-week and 25-week moving averages. It is also slightly below the upper side of the ascending channel.
Therefore, while the pair may pull-back to 1.3700, there is also a possibility that it will retest the vital resistance at 1.4500. However, a drop below 1.3750 will invalidate this trend.
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