GBP/USD: America's stimulus package to weigh on the cable

The US dollar is gaining ground as President Biden may eventually pass a large stimulus bill and yields are rising. Meanwhile, America's vaccination campaign is catching up with Britain's, also supporting the greenback and weighing on GBP/USD, FXStreet’s Analyst Yohay Elam reports.

Key quotes

“The US dollar has been gaining ground as investors sell Treasuries in response to higher prospects of a generous relief package. Senate Democrats have advanced a partisan reconciliation bill, taking the first step in potentially approving President Joe Biden's proposed $1.9 trillion stimulus package. The unilateral move by Biden's party raises the chances for ‘going big’ – support worth closer to the upper edge.”

“America's economy is getting a shot in the arm from a ramped-up vaccination campaign. Pharmacies are set to begin administering vaccines next week while both Pfizer and Moderna also upgraded its forecast for delivering doses of the vaccine.” 

“Support awaits at the weekly low of 1.3610, followed by 1.3520 and 1.3455, which were stepping stones on the way up in January. Resistance is at 1.675, the recent high, followed by 1.3720, a previous 2021 peak, and then by 1.3752, the multi-year high.”