The yield spread between two-year and ten-year US government bonds has renewed a three-year maximum, which signals a continuation of the trend in this currency pair. Now this figure is only slightly above 1% and can easily double in the next one or two years. In the past, rising yield spreads have always facilitated the weakening of the US dollar.

This indicator began to rise in the spring of last year and if we look at the GBPUSD chart, we will see that the annual minimum were also formed in the spring and since then there has been a good upward trend. History is repeating and against this background we can expect the continuation of the trend. We are not surprised at all if the 1.4000 level is tested this month.

Investment idea: Buy 1.3755/1.3729 and take profit 1.3815.