GBP/USD: Bulls eye recent peaks, boosted by renewed risk sentiment

Slobodan Drvenica Windsor Brokers

GBP/USD

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

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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