GBP/USD - 1.3986.. Although cable briefly rose abv Fri's 1.3909 top to 1.3911 in Asia y'day, price fell on broad-based selling of sterling on UK re-opening amid rising Covid cases, price hit 1.3839 b4 reboundings to 1.3905 (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, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month, 1.4241 peak in late Feb suggests a major low is made. Despite hitting a 3-year peak of 1.4250 on Jun 01, sell off to as low as 1.3733 last Fri confirms long-awaited correction has occurred n would pressure price two chart obj. at 1.3670 after consolidation. Only a daily close abv 1.4001 signals 1st leg of correction over n risks stronger gain to 1.4074 but 1.4132 should cap upside.

Today, cable's rally abv 1.3898 (reaction high FM 1.3733) signals fall FM 2021 peak at 1.4250 (Jun) has made a temp. low n as long as 1.3839 holds, upside bias remains for gain to 1.3930 (38.2% fm 1.4250), 'bearish divergences' on hourly oscillators should cap price below 1.3986. Below 1.3839, 1.3797.

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