GBP/USD - 1.3758.. Although cable gained fm 1.3726 in Asia to 1.3770 (Reuters) in Europe, price met renewed selling n fell to 1.3695 in NY on cross- selling in sterling b4 recovering to 1.3757 on usd's weakness, then 1.3762 today.

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. Although cable rallied strongly to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a 34-month peak at 1.4241 in late Feb, subsequent fall to 1.3670 Fri signals top is made n stronger retracement to twd 1.3566 would be seen. Only a weekly close abv 1.3919 signals temporary low is made n risks gain to 1.4001/05.

Today, despite y'day's brief but sharp fall to 1.3695, subsequent bounce suggests choppy trading abv last Fri's 1.3670 low would be seen n retrace. to 1.3785/90 is likely, however, reckon 1.3802 should hold, yield retreat. Below 1.3695 is needed to bring re-test of 1.3670, break extends to 1.3643 'later'.

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