GBPUSD rises above 1.40

19/02/2021

The GBPUSD pair continues to rally, and it was up 0.25% on Friday, having jumped above the psychological level of 1.40 for the first time since April 2018.

Earlier in the day, British retail sales absolutely cratered, of course, due to the never-ending lockdown in the country. The year-on-year change dropped to -5.9% from 3.1% previously, while the monthly basis crashed to -8.2% from 0.4% scored in December. 

The next major resistance for the cable will most likely be in the 1.43 region, where 2018 highs are located. Till then, 1.41 and 1.42 could offer some selling pressure. 

On the downside, dips should be bought, as the market is clearly in a very nice uptrend, with supports seen near 1.3950 and 1.3750.

Sentiment seems to be anti-dollar, despite rising US yields. As long as sterling trades above 1.3950, the short-term outlook appears bullish. 
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