GBP/USD Rebounds Following Five Declines in Row

The British Pound (GBP) is rising on Thursday, supported by a positive sentiment as the United Kingdom (UK) and the European Union (EU) vowed to cooperate to reach a settlement to the current disagreements in a way that would facilitate cooperation in vaccine distribution and transportation.

Despite a mostly positive performance by the U.S. Dollar (USD) against major rivals, the GBP scored high gains against the greenback, which remains supported by the high Treasury bond yields despite the recent declines, as they remain near their highest level in about a year.

GBP/USD is trading higher for the day by 0.39% at 1.3738. The pair has been moving mostly in the positive territory today in a range between 1.3670 and 1.3744, after closing Wednesday with its fifth consecutive decline at 1.3686.

The pair remain well below the 1.4000 level, which it failed to sustain since the beginning of the month despite multiple attempts.

The Sterling’s gains come even bigger against the declining Euro (EUR), with the EUR/GBP pair trading lower by 0.68% at 0.8574.