GBP/USD - 1.3811.. Cable maintained a firm undertone in Australia y'day n easily penetrated Jan's 2-1/2 year 1.3759 top to 1.3789 in Europe on continued usd's weakness. Price later climbed to session highs of 1.3820 in late NY.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, sterling's rally to as high as 1.2812 (Jun) on broad-based usd's weakness, then to an 8-month peak of 1.3482 in Sep suggests a major bottom is in place. Cable's rally to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then gain to a fresh 2-1/2 year peak at 1.3820 Tue suggests price would head twd 1.3895, 'bearrish divergences' on daily indicators may cap price below 1.4000. On the down- side, below 1.3566 signals temporary top is made n yields 1.3521, then 1.3451.

Today, as price is currently trading abv 21-hr n 55-hr emas, suggesting upside bias remains for further gain, as hourly oscillators' readings would be in o/bot territory, reckon 1.3895 would cap upside. Only a daily close below 1.3759 signals temp. top is made, risks retracement to 1.3700/10 b4 rebound.

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