GBPUSD has been trading above a rising trend line on its daily chart, and it looks like buyers are defending the support level. In that case, the pair could recover to the swing high at 1.4238 or higher.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. This is around the 50% Fibonacci retracement level and 100 SMA dynamic support that add to its strength as a floor.

Stochastic is already turning higher to confirm a return in bullish pressure. RSI has already pulled up without hitting the oversold region, suggesting that buyers are eager to return.

Several parts of the UK are already ready to reopen following lockdowns, as the vaccination rollout efforts in the region have been mostly successful. There is also a lot of progress in the US when it comes to tackling the pandemic as well, although the rising number of confirmed cases could derail some of the efforts.

There are no major reports due from the UK economy this week while the US has the FOMC minutes to contend with. Recall that the Fed cited that they’re not keen on adjusting policy just yet but will continue to monitor movements in the bond market to gauge if they need to act.

The minutes of their meeting should contain more insight on how hawkish or dovish other voting members are, hinting on the odds that the central bank could adjust monetary policy soon.

Meanwhile, changes in risk sentiment could also determine where the dollar is headed next, with a pickup in risk aversion likely to spur demand for the safe-haven dollar. Stronger risk appetite, on the other hand, could mean more upside for its counter currencies.