GBP/USD has surged well past 1.40, reaching the highest levels in 34 months. The bulls shrug off dismal UK retail sales data amid broad-based US dollar weakness. UK Markit's preliminary PMIs came out significantly above expectations. GBP/USD has been extending its gains and has surpassed the round 1.40 level. The move is primarily driven by the descent of the dollar, which is suffering profit-taking after advancing with yields earlier in the week. News about President Joe Biden's stimulus plan is awaited.
GBPUSD is shrugging off weak UK retail sales figures. Expenditure dropped by 8.2% in Britain in January. Markit's Purchasing Managers' Indexes are awaited. Investors are eagerly awaiting Prime Minister Boris Johnson's announcement about easing restrictions.
Above 1.40, the next lines to watch date to 2018 and these include 1.4110, 1.42 and 1.4240.
Support awaits at 1.3950, the previous 2021 peak, followed by 1.39, then by 1.3880, and finally 1.3830.