The lifting of a number of social restrictions in Great Britain supported the pound sterling, which, against the dollar, grew for two weeks in a row. The British currency’s gains this year have been helped by a tougher tone from the Bank of England, which has begun to cut asset purchases, as well as a vaccination campaign in the UK. According to analysts, if there are no “surprisingly hawkish” remarks from the Fed representatives this week, the GBPUSD pair may test the 1.4165 / 1.4200 area.
Is it worth now to open buy positions in the GBPUSD pair, or is it too late to buy the pound? AMarkets experts answered the question of Fortrader magazine.
– The GBP / USD pair still retains significant upside potential. The British currency will continue to be supported by a decline in the dollar, strong statistics from England, as well as the ongoing widespread easing of quarantine restrictions in the country.
Since the beginning of the week, quarantine measures for the service sector have been significantly eased, and cinemas, museums, restaurants, cafes and pubs have opened. Residents of the United Kingdom were allowed to go abroad, to the countries of the so-called “green zone”.
As for statistics, the data on the labor market showed that the unemployment rate in England in March fell to 4.8%, and the number of employed increased by 84 thousand, while experts predicted an increase of 50 thousand. England may be among the first regulators who will go to tighten the national monetary policy. With that said, in contrast to the Fed’s soft rhetoric, the British currency’s recovery against the dollar may well continue with a target of 1.45.