GBP/USD Forecast: Parliament votes post-Brexit deal, AstraZeneca vaccine approved

GBP/USD Current price: 1.3698

• The dollar’s broad sell-off continues, providing support to GBP/USD.
• The UK has approved the emergency use of the AstraZeneca covid vaccine as cases soar.
• GBP/USD is neutral-to-bullish in the near-term, could extend its advance to 1.3700 area.

The GBP/USD pair is slowly by steadily advancing towards this year’s high at 1.3624, as speculative interest keeps selling the greenback. News that the US Congress delayed the discussion on increasing coronavirus relief’s direct payments hit the American currency. In the UK, Parliament is set to discuss and vote on the post-Brexit deal with the EU, which is expected to pass without too much noise.

Meanwhile, the UK reported a record of over 53K new coronavirus contagions on Tuesday,  while the death toll surpassed 71K, despite tough restrictions are under place in most of the country. The kingdom approved today the emergency use of the AstraZeneca vaccine and will start applying it next Monday. Combined with the Pfizer vaccine currently in use, the country has an ambitious plan to vaccinate 2 million people per week.

The US session will bring the preliminary estimate of November Wholesale inventories and the Goods Trade Balance for the same month. Later into the session, the country will publish November Pending Home Sales.

GBP/USD short-term technical outlook

So far, the GBP/USD pair traded as high as 1.3610, currently hovering around the 1.3600 level. The pair is bullish but lacks strength, according to the 4-hour chart. GBP/USD bounced from a mildly bullish 20 SMA, which advances above the larger ones. The Momentum indicator is flat around its 100 level, while the RSI grinds higher around 63. The bullish case will be firmer once beyond the mentioned year’s high, with room for an advance towards the 1.3700 threshold.

 Support levels: 1.3465 1.3420 1.3360

Resistance levels: 1.3520 1.3550 1.3595

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