GBP/USD outlook: Bulls pressure key 1.37 barrier but risk of stall exists
|GBP/USD
Cable keeps firm bullish tone in early Wednesday’s trading and extends strong rally from the previous day (the pair was up 1.04% for the day in the biggest one-day rally since Nov 5), pressuring key barriers at 1.3700 zone (new multi-month high / upper 20-d Bollinger band).
Full retracement of 1.3700/1.3451 pullback suggests that corrective phase is over and larger bulls are ready to resume.
Fibo projections at 1.3763 (123.6%) and 1.3800 (138.2%) mark immediate targets, with stronger acceleration to threaten psychological 1.40 barrier.
Rising stocks and weaker dollar underpin fresh risk appetite and lift sterling, as Brexit story is currently sidelined, but worries about pandemic remain and could deflate pound.
Failure to clear 1.37 pivot would signal prolonged consolidation, with dip-buying to remain preferred scenario while the price action stays above rising 10DMA (1.3607).
Dip and close below 20 DMA would increase downside risk.
Res: 1.3703; 1.3763; 1.3800; 1.3860.
Sup: 1.3657; 1.3607; 1.3577; 1.3547.
Interested in GBP/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.