GBP/USD - 1.3855.. Sterling remained on the back foot last week, price met renewed selling at 1.3999 Mon n extended recent decline to 1.3860 Tue. Despite a short-covering rise to 1.4017 (Thur), price tumbled to 1.3779 in NY Fri.

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 1.3779 last Fri signals top is made n stronger retracement to 1.3636, then twd 1.3566 is envisaged. Only abv 1.4017 signals 1st leg of correction over, 1.4120/30.

Today, cable's weakness to a near 3-week low of 1.3779 suggests decline fm Feb's near 34-month peak at 1.4241 would head to 1.3751 after consolidation, 'bullish convergences' on hourly indicators may keep price abv 1.3723. Only a daily close abv 1.3906 risks stronger retracement to 1.3933, then 1.3970/80.

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