The GBP/USD pair has been on a bullish trend for the past few weeks, with the pound sterling rising against the US dollar. This trend is expected to continue in the coming weeks, as the UK economy shows signs of recovery and the US dollar weakens.
One of the main factors driving the bullish trend in GBP/USD is the UK’s successful vaccination program. The country has administered over 30 million doses of the COVID-19 vaccine, which has led to a significant decline in new cases and deaths. This has boosted investor confidence in the UK economy, as it is expected to reopen fully in the coming months.
In addition to the successful vaccination program, the UK government has also announced a series of measures to support businesses and individuals affected by the pandemic. These measures include an extension of the furlough scheme, grants for small businesses, and a stamp duty holiday for homebuyers. These measures are expected to provide a boost to the UK economy and further support the bullish trend in GBP/USD.
On the other hand, the US dollar has been weakening in recent weeks due to a combination of factors. The Federal Reserve has maintained its accommodative monetary policy, which has led to a decline in US Treasury yields. In addition, the US government has announced a massive stimulus package, which is expected to increase inflation and further weaken the US dollar.
Looking ahead, analysts expect the bullish trend in GBP/USD to continue in the coming weeks. The pair is expected to break through the resistance level at 1.40 and reach new highs. However, there are also risks to this outlook, such as a resurgence of COVID-19 cases or a sudden shift in investor sentiment.
In conclusion, the GBP/USD pair is expected to continue its bullish trend in the coming weeks, driven by the UK’s successful vaccination program and supportive government measures. However, investors should remain cautious and monitor any developments that could impact the outlook for the pair.
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