- GBP/USD gained traction for the third straight day, albeit struggled to capitalize on the move.
- A modest pickup in the US bond yields underpinned the USD and capped gains for the major.
- A subsequent slide below the 1.3745-40 region will shift the bias in favour of bearish traders.
GBP/USD is hovering at near 1.38 as the US dollar remains under pressure alongside US Treasury yields. Britain's successful vaccination campaign is boosting sterling. The BOE's Haskel and the Fed's Powell are set to speak.
The four-hour chart is showing that the Cable has been rejected at 1.3810, a line that capped it twice in late March – making it a critical barrier. Momentum has turned to the upside. All in all, bulls are gaining ground.
Bulls, however, struggled to capitalize on the move or find acceptance above the 1.3800 round-figure mark. As investors digested Tuesday's rather unimpressive US CPI report, a modest pickup in the US Treasury bond yields assisted the USD to rebound from three-week lows and prompted some selling around the GBP/USD pair.
Even from a technical perspective, the emergence of some selling at higher levels suggests that the positive move witnessed since the beginning of this week might have run out of steam. A subsequent slide below the 1.3745-40 region will reaffirm the negative bias and turn the GBP/USD pair vulnerable to slide further.