Sterling surges on rising inflation.
GBPUSD rising under the effect of the predominantly bullish sterling sentiment and the continuation of the bearish US dollar sentiment. Sterling sentiment improved markedly when it was reported that UK prices picked up in December. Consumer prices rose 0.6% in December, after a 0.3% increase in the previous month – helped by the easing of COVID-19 travel restrictions and by the rising oil prices. The other side of the pair – USD continues to fall under the safe-haven outflows – after U.S. Treasury Secretary nominee Janet Yellen’s told lawmakers to “act big” on spending and worry about debt later – which saw the dollar fall against most major currencies.
Expect buyers on downward corrections.
Next resistance to watch – 1.3775
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