Cable stands at the front foot in early European session on Thursday and returned above 1.33 handle after pulling back from new multi-month high at 1.3381, posted after strong rally on Wednesday (the pair was up 1.8% for the day, the biggest one-day rally since 24 Jan 2018).
Sentiment remains positive after UK parliament voted down scenario of Britain’s exit from the EU without withdrawal agreement and rising optimism that PM May’s plan might be approved on the parliament’s third vote, expected before EU summit on 21 Mar, inflates pound (Goldman Sachs raises probability of divorce deal being approved to 60%).
Wednesday’s probe above former high at 1.3349 marked full retracement of 1.3349/1.2960 pullback, but failure to close above signals that bulls look for consolidation before fresh push higher.
Sustained break above 1.3381 high and 1.3386 Fibo barrier (50% of 1.4376/1.2397) would open way towards 1.3472 (3 Jun 2018 high) and would expose key barrier at 1.3620 (Fibo 61.8% of 1.4376/1.2397).
Daily momentum and stochastic are turning south and form bearish divergence that could trigger corrective action.
Overnight’s dip stalled on approach to pivotal support at 1.3220 (Fibo 38.2% of 1.2960/1.3381 upleg) which is required to hold and keep bulls intact, as Wednesday’s long bullish daily candle underpins.
Only return below 1.3170 (10SMA / 50% retracement) would sideline bulls and risk further easing.

Res: 1.3330; 1.3349; 1.3381; 1.3472
Sup: 1.3281; 1.3239; 1.3220; 1.3170



Interested in GBPUSD technicals? Check out the key levels

    1. R3 1.3788
    2. R2 1.3586
    3. R1 1.3463
  1. PP 1.3262
    1. S1 1.3139
    2. S2 1.2937
    3. S3 1.2814


The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD under pressure below 1.1100 as US dollar rebounds

EUR/USD remains under pressure below 1.1100 amid the broad US dollar rebound. US President Trump's decision to extend lockdown to tackle the coronavirus outbreak intensified risks of a deeper economic slowdown and underpinned the haven demand for the greenback. 


GBP/USD: Rebound remains capped by 1.2400 amid firmer US dollar

GBP/USD is off the lows but the upside attempts remain capped by 1.2400 amid a broadly stronger US dollar. The dire warnings on the UK’s economic growth amid expectations of a longer lockdown weigh on the spot. 


Cryptocurrencies: Bulls try to take the reins again, XRP in front

The XRP/USD pair is best positioned to escape the bearish trap that has gripped the market in recent weeks. Ether needs to do better than BTC, as it has happened over the weekend. Market sentiment is at a negative extreme, an invitation to a short-term upward shift.

Read more

Gold remains confined in a narrow range around $1620 level

Gold extended its sideways consolidative price action and remained confined in a four-day-old trading range through the early European session on Monday. A goodish pickup in the USD demand seemed to be a key factor capping gains.

Gold News

WTI closes in on multi-year lows, trades around $20.50 on demand concerns

The barrel of West Texas Intermediate (WTI) posted losses for the sixth straight time last meek and is now looking to close the month of March more than 50% lower. 

Oil News

Forex Majors