Cable remains constructive on Monday and focusing new 2021 high 1.3757, following last week’s strong downside rejection (1.3565) which formed a bear-trap pattern, signaling strong bids and keeping larger uptrend (recently paused) in play.
But 1.37 zone still marks very strong barrier which so far resisted several attacks, however shallow dips suggest that the pair would stay in extended consolidation before final break higher.
Near-term bias is expected to remain with bulls as long as price action continues to move above rising 20DMA (1.3673) which underpins the action since mid-December.
Weaker dollar on disappointing US jobs data in January that deflated optimism about accelerating US economic recovery contributes to pound’s strength.
Res: 1.3758; 1.3800; 1.3832; 1.3877
Sup: 1.3696; 1.3673; 1.3638; 1.3565
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