Vaccination Progress Bolsters Sterling

Sterling has picked up a bid in reaction to optimism surrounding the UK's Covid-19 vaccination effort, as PM Johnson announced that England has met its target of inoculating 15mn people from the top four priority groups.

• Cable has added 50 pips and showed above $1.3900 for the first time since Apr 2018. It last sits at $1.3898, with bulls targeting Apr 27, 2018 high of $1.3935. A break here would open up Apr 26, 2018 high of $1.3998. Bears keep an eye on the 20-EMA at $1.3737.
• EUR/GBP trades at GBP0.8731, 19 pips worse off & testing worst levels since mid-2020. Further losses past May 11, 2020 low of GBP0.8711 would turn focus to May 5, 2020 low of GBP0.8691. Meanwhile, a jump above Feb 4 high of GBP0.8840 would expose the 50-EMA at GBP0.8894.
• GBP/JPY is 59 pips firmer, last sits at Y146.06. It has last printed these levels towards the end of 2019 and bullish focus falls on Y147.96, the high print of Dec 13, 2019. Bears would be pleased by a pullback under Feb 9 low of Y144.04.