WILL THE GBP/USD GET STRONGER?
In the UK, Services PMI in March was 56.3, slightly below expectations. In England, it was also announced that Oxford-AstraZeneca vaccine will not be given to those under the age of 30. After that, the tension on the Sterling side brought about attacks towards the level of 1.3730 in the parity. In particular, lifting the restrictions on the COVID-19 outbreak is perceived positively in the country, while the weakness in the data announced suppresses the recoveries on the Sterling side. On the other hand, statements that all adults will be vaccinated by the end of July in the UK attracted attention, while the IMF increased its growth expectation for the UK from 4.5% to 5.3%.
If we look at the US side, while the dollar index was weak throughout the week, weekly unemployment benefit applications shrank by 719 people, above expectations. While this data creates a slight depreciation on the dollar side, the US 10-year bond yields continue to move around 1.66 percent. In the FOMC official reports, it was noted that the members did not have inflation concerns, and it was stated that more time was needed to reduce asset purchases. On the other hand, Fed Chairman Powell's statement that he is not worried about inflation seems to increase the risk appetite in the markets.
After all these developments, GBPUSD parity, which spent the week below 1.38 level, may enter into a speed gain within the framework of 1.37 and 1.3616 support levels if prices remain below 1.3770 level. However, in a possible close above 1.3770 level, if 1.3855 first attack point is above this level, we follow 1.3940 and 1.4020 resistance levels.