GBP bulls continue to take charge as GBP/USD breaks 1.40 for the first time since April 2018. The narrative behind the GBP bull case remains unchanged with a successful vaccine program and reduced political uncertainty with Brexit now behind us. That said, this morning’s data has been mixed overall with soft retail sales and better than expected PMI data shrugged off. Going forward, while the current narrative remains in play for GBP, given the substantial rise since the beginning of the year and with the psychological 1.40 barrier being taken out, I wouldn’t be surprised to see some profit taking occur, particularly as GBP crosses trade at overbought levels.
