GBP/USD outlook: Cable is on track for strong weekly gains, bulls pressure key 1.40 resistance zone
|GBP/USD
Cable remains firm and holding near a five-week high on Friday, pressuring key barriers at 1.3990/1.4000 (Fibo 61.8% of 1.4249/1.3571/twisting daily cloud/psychological).
The pair advanced strongly this week and is on track for the biggest weekly gains since the last week of August 2020, lifted by the softer dollar after dovish Fed and improved sentiment on a fall in coronavirus cases in Britain.
Technical studies on the daily and weekly charts are in bullish setup and support the advance, however, strongly overbought daily stochastic warns that bulls may face headwinds from 1.40 resistance zone.
End of week profit-taking after about 1.5% weekly advance, could also contribute.
Corrective dips are expected to offer better buying opportunities and should be ideally contained at 1.3920/00 zone (100DMA/former lower high), with possible extended downticks to find ground above 1.3824 (Fibo 38.2% of 1.3571/1.3981 rally) to keep bulls in play.
Completion of reversal pattern on weekly chart signals that 1.4249/1.3571 corrective phase is likely over that gives boost bulls for push through 1..40 pivot.
Res: 1.3990; 1.4000; 1.4073; 1.4089.
Sup: 1.3922; 1.3900; 1.3842; 1.3824.
Interested in GBP/USD technicals? Check out the key levels
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