Pound sterling has great potential for growth

The UK is outperforming key European rival countries in terms of vaccination rates and the British pound continues to benefit from the growing momentum to open up the economy. For the first time since April 2018, the pound/dollar pair rose above the 1.39 mark.

What are the further growth targets of the GBPUSD pair and are there any risks for the British currency? Experts at AMarkets responded to the question of Forttrader magazine.

"At the current stage there are almost no risks. It is developing a steady bullish dynamic, with support for hopes of a rapid recovery in the UK economy following the Government's announcement of a plan to vaccinate 15 million Britons from COVID-19.

According to the latest statistics, about 10,000 new cases were detected in England on Monday, the lowest since the beginning of October. Prime Minister Boris Johnson has previously said vaccination is proceeding at an active pace and has already managed to vaccinate around 22% of the population. According to him, if the number of new cases of coronavirus infection continues to decrease, on February 22, the gradual abolition of existing restrictions and lockdowns may begin.

Support for the pound, as well as all risky assets, continues to provide a weakness of the dollar. Investors are anticipating additional fiscal stimulus in the U.S. and economic recovery through coronavirus vaccination around the world. It is worth noting that the prospect of new measures of state aid in the United States is inextricably linked with the continuation of the period of fundamental weakening of the dollar. The fact is that the inflow of new liquidity into the economy will have a positive impact on the growth rate of U.S. GDP and will reduce the attractiveness of protective assets, such as the dollar, and .

GBP/USD currency pair

Thus, given the effectiveness of the campaign to spread the vaccine among the population of England, as well as the high probability of further decline of the dollar, the PAIR GBP/USD still retains the growth potential above 1.40.