The British economy is recovering faster than most analysts expected. The most recent data show that the unemployment rate of the economy fell to 4.9% in March. By contrast, the US unemployment rate rose from 5.9% in March to 6.1% in April.
The UK housing sector was also robust due to relatively low interest rates and the stamp duty holiday by Boris Johnson’s government. Data released on Monday shows that house prices have risen fastest in five years.
Right, data from Halifax showed that the price in April rose by 1.4% to 258,000 pounds. The average price has indeed increased by £ 20,000 since the beginning of the pandemic. However, there are concerns that the sector will slow down if the government stops its support.
The GBP / USD has also increased due to the weaker US dollar. The dollar sales accelerated today as Forex traders continue a more relaxed Federal Reserve in prices after the weak job figures that were published on Friday. The data showed that the economy added only 266,000 in April, while the unemployment rate increased.
This week, the GBP / USD will be affected by the latest US consumer inflation figures scheduled for Wednesday this week and retail sales on Wednesday. The pair will also respond to The Last UK GDP coming out on Wednesday. Analysts expect the data to show that the economy contracted 6.1% in the first quarter.
The GBP / USD pair formed a symmetrical triangle pattern last week, as can be seen in the 4-hour chart below. The Triangle reached its confluence level on Friday, leading to a major bullish outbreak. Indeed, the price is more than 1.25% above the Triangle conflict zone. It has also increased above 25 and 15-day exponential moving averages. It has also increased above the Fibonacci retracement level of 23.6%. Therefore, although a short pullback is possible, the pair will likely continue to rise as bulls focus on the next major resistance at 1.4150.