GBP/USD is all set to end the second consecutive week on a positive note, gaining as the US dollar trades weak amid concerns about the Fed’s plans to extend its dovish stance for longer. At the time of writing, GBP/USD is trading at around 1.40.

Since the beginning of this month, the Cable has strengthened by around 1.8%, boosted by the BOE’s plans to start tapering its asset purchase program over optimism that the British economy could post a quick recovery from the coronavirus crisis. On the other hand, the Fed is planning to stick with its dovish outlook even as it admits that the US economy is also on track to recover at a faster than anticipated pace.

GBP/USD has also been trading bullish in recent weeks, supported by the reopening of the UK economy from its latest round of lockdowns. In addition, the rapid rollout of the COVID-19 vaccine across the UK has also raised hopes that Britain could emerge out of the crisis sooner than other European countries and possibly even overtake the US.

There were some cautious moves in recent sessions over the victory of the SNP in the Scottish parliamentary elections over concerns that the party could call for another referendum on Scottish independence. However, those fears have since abated as markets expect that such a vote may not take place in the near future.