GBP/USD needs an impulse from moderate US figures and dovish Fed comments to continue advancing

GBP/USD has been making its way higher after retreating from the peak earlier on as UK covid cases continue falling. Attack on 1.40 coming? Upbeat UK data supports gains, in the view of FXStreet’s Analyst Yohay Elam.

Cable trend is positive

“UK COVID-19 cases have extended their decline, and seem to be on the verge of breaking below the 20,000 infections/day barrier. Despite the increase in deaths from the deadly disease, it seems that Britain's reopening had little effect on spreading the virus.” 

“Another positive development is the upgrade to Markit's Services Purchasing Managers' Index. The final read shows a score of 59.6, up from 57.8 originally reported.”

“The ADP Nonfarm Payrolls report provides a snapshot of private-sector hiring. An increase of 695,000 positions is expected. The ISM Services PMI is predicted to remain above 60, reflecting strong growth in America's largest sector. However, a miss in the ISM Manufacturing PMI implies the services gauge could also drop.”

“Vice-Chair Richard Clarida is scheduled to speak about the economy and could provide insights into the bank's thinking about tapering its bond-buying scheme.” 

“Some resistance awaits at the daily high of 1.3947, and it is followed by the July peak of 1.3980. Above the round 1.40 level, 1.4030 is eyed.” 

“Support is at 1.3870, the weekly low, followed by 1.3850 and 1.3760.”