The re-opening of UK continues with people now allowed to be inside pubs and restaurants from Monday along with indoor socializing and a limited range of foreign travel. This should led a  helping hand to re-boot the service sector, an area that has been hit hard by coronavirus lockdowns, with people now able to spend in-store as well as online.

The recent covid-19 vaccination data showed nearly 70% of the adult population have had at least one dose, while just over 38% have had two doses. Thus this speedy action has enabled the UK government to stick to its re-opening plans, even though there are worries over a new Indian mutation. The government has said that while this new variant could cause the ongoing re-opening to a hault But the current vaccination program works against the new Indian variant.

The latest UK jobs data is optimistic and its release showed employment picking up and the unemployment rate falling which has also beat market expectations.

As per the recent news, the number of payroll employees has increased for the fifth consecutive month but remains 772,000 below pre-coronavirus (COVID-19) pandemic levels. Since February 2020, the largest falls in payrolled employment have been in the hospitality sector, among those aged under 25 years, and those living in London.

The cost of living in the UK as represented by the Consumer Price Index (CPI) for April month is due early on Wednesday at 06:00 GMT. The headline CPI inflation is expected to go to 0.1% from 0.7% prior on an annual basis while the Core CPI, which excludes volatile food and energy items, is likely to remain at the same level of previous reading 1.1. Talking about the monthly figures, the CPI could double from 0.3% prior to 0.6% during April.

Elsewhere UK is favoring the Aussie exporters. Boris Johnson is prepared to offer Australia tariff-free access to British food markets despite warnings that it could put farmers out of business. The prime minister is backing a plan to give Australian food exporters the same terms as those enjoyed by the European Union in what would be the first bespoke trade deal signed by the government since Brexit.

GBP/USD 4 Hour Chart:

Support: 1.4140 (S1), 1.4096 (S2), 1.4056 (S3).

Resistance: 1.4225 (R1), 1.4265 (R2), 1.4309 (R3).

The reopening of UK along with the favorable employment data favors the pounds. Traders will now keep an eye on the CPI report. In the meantime we expect a bullish trend for GBP/USD.