British currency GBP rose in price against US Dollar to the resistance level of 1.4130.
The growth of Pound on Forex is helped by 3 main factors – the elections in Scotland, the accelerated return to full-time work in the UK and weak labor market data in the US.
The Scottish National Party won the regional elections, but did not gain an absolute majority. While politicians continue to push for a new independence referendum, the lack of a complete victory for the nationalists has led to some relief for buyers of the pound. British Prime Minister Boris Johnson intends to announce new measures related to the resumption of business operations in the country. Active vaccination has dramatically reduced the number of cases, and some analysts suggest that the government may speed up the timing of the full opening of the economy.
The US labor market fell short of expectations – only 266,000 jobs were added in April, against a forecast of nearly a million. While seasonal adjustments may have been skewed by the pandemic, the Fed is in no hurry to reduce its bond purchases. There is no question of raising the rate either. Against the background of a short-term drop in interest in the Dollar, the British currency looks particularly confident. Less than 100 points remain before the multi-year maximum level reached in February. In the near term, the pair will continue to grow.
Signals for trading GBP/USD currency pair
The forecast expect the Pound/Dollar exchange rate to strengthen to 1.4150, 1.4170 and 1.4200.