GBP/USD set to move with a heavy topside this month – Mizuho

The GBP/USD pair moved bearishly in March. In the view of economists at Mizuho Bank, the cable will continue moving with a heavy topside in April. After rising until February, the pair has since undergone some adjustment while being swayed by dollar trends.

The first thing to watch will be headlines related to covid vaccines

“The markets have been impressed by the high pace of COVID-19 vaccinations in the UK, but this seems to be growing less potent as a factor impacting trading. Of course, it will only be natural if this factor fades away as other countries also implement vaccination programs (with the Biden administration’s plans to increase vaccination rates also likely to have an impact).” 

“UK/EU headlines should also be monitored, though it is uncertain how much these will impact the pair’s movements.” 

“After being slightly overshadowed by other central banks recently, the Bank of England’s MPC will not be meeting in April. The GBP/USD pair will probably be swayed by comments by MPC members, but these are unlikely to shift the pair’s trend.”