Cable is traded with the positive momentum. The bulls attack the highest levels since April 2018, flashed the previous day, ahead of the UK employment report for January. The forecasts suggest improvement in the UK jobs report but any disappointment can’t be ignored as this includes the lockdown period.

Interest rates may stay at historically low levels for decades, the Bank of England (BOE) policymaker Gertjan Vlieghe said in a webinar on Monday, adding that he doesn’t see higher rates returning in his lifetime. Vlieghe who is 49, also said longer life expectancies and more time spent in retirement had boosted demand for safe retirement assets, pushing down long-run interest rates across developed economies including Britain.

When asked by students at Durham University when interest rates might return to the level of 4% to 5% common before the financial crisis, Vlieghe replied: “Maybe not in my lifetime.” “Actually if you look at very long run data on interest rates, it’s the 1970s and 1980s that were unusual decades. Interest rates were unusually high then,” he added.

Bank of England officials have talked before of the long-run downward pressure on interest rates, but rarely look as far forward into the future as Vlieghe did.

On the other hand, The U.S. dollar resumed its slide on Monday and reached multi-year lows against the British pound as the traders is focused on the promise of coronavirus vaccinations and the outlooks for economic growth and inflation.

The dollar’s downtrend has come as the benchmark yield on 10-year Treasury notes has climbed to 1.37% from 1.1% at end of January. This 10-year yield is relatively steady in trading on Monday in advance of Powell’s testimony, which will go into a second day on Wednesday before another committee.

“The dollar continues to wax and wane with U.S. data that have painted a mixed picture of the world’s biggest economy,” said an Analyst. Weakness in U.S. employment has been undermining dollar rallies as markets see wavering jobs data reinforcing the Federal Reserve’s commitment to low interest rates, Analyst added.

GBP/USD 4 Hour Chart:

Support: 1.4000 (S1), 1.3938 (S2), 1.3894 (S3).

Resistance: 1.4106 (R1), 1.4149 (R2), 1.4211 (R3).

Amid reflation trade and economy re-opening up from the coronavirus pandemic induced lockdowns, the pound remains the top performer; we expect a bullish trend for GBP/USD.