GBP/USD: Potential profit-taking could send the pound lower

GBP/USD has been on the rise driven by US dollar weakness. Concerns about coronavirus and potential profit-taking could send the pound lower, in the opinion of FXStreet’s analyst Yohay Elam.

Key quotes

“The greenback has been suffering the Fed's open-ended QE program and Chairman Jerome Powell's ongoing commitment to support the struggling economy.” 

“The market mood has been upbeat also due to the Senate's approval of the massive $2 trillion fiscal package. The House is set to begin a debate on the bill on Friday and it will likely turn into law over the weekend.” 

“Stock markets seemed to take the labor market figures with a stride on Thursday, but S&P futures are on the back foot on Friday. If the three-day rally comes to a halt, the greenback has room to rise.” 

“The University of Michigan's final Consumer Sentiment read for March is set to show another drop later in the day, but virus figures will likely have the upper hand.”