The GBP/USD is holding steady ahead of the important UK manufacturing PMI and house price index data. The GBPUSD is also reacting to the easing tensions between the UK and the EU on coronavirus vaccine supply. It is trading at 1.3742, which is close to its January high of 1.3756.
What’s happening: The GBP/USD is rising ahead of the UK manufacturing PMI data that will come out during the morning session. Economists expect the data to show that the country’s manufacturing sector held steady even as the country continued its lockdowns. They see the PMI coming in at 52.9.
The pair will also react to the important UK mortgage approvals and lending numbers. In total, analysts expect the data to show that mortgage lending dropped to 5.59 billion pounds from the previous 5.68 billion pounds.
The GBPUSD is also reacting to the easing tensions between the UK and the European Union about the AstraZeneca vaccine jab. Last week, the EU asked the company to divert supplies destined to the UK to mainland Europe.
GBP/USD technical outlook
The GBP/USD is trading at 1.3742, which is close to where it was in April 2018. On the daily chart, the price is between the ascending blue channel and is above the 15-day and 25-day exponential moving averages. Therefore, while it seems like bulls have the momentum, we cannot rule out a situation where the price makes a pullback in the near term. Also, the most likely scenario is where the price rises to the psychological level of 1.3800.