GBP/USD Price Analysis: Cable is about to hit is highest weekly close this year

GBP/USD is trading 1% higher on Friday after another bullish close.
The pair hit its highest level his year at 1.3357 as the bulls take hold.

Rajan Dhall, MSTA FX Daily

GBP/USD weekly chart

Cable has hit its highest level this year as the USD capitulation continued this afternoon. AUD and NZD were the only other majors to beat the pound but JPY also flipped flopped in 3rd place on Friday. As Powell's update yesterday failed to inspire any dollar bulls it will be interesting to see if next week's NFP data can change the course of the fledgeling greenback.

Looking at the chart now the next resistance zone is at the 1.3515 wave high from 13th December 2019. Since that point, GBP/USD moved to hit a low of 1.1414 in March 2020 and it's hard to believe the price is where it is today.

Interestingly the price is also heading to the 24th June 2016 UK referendum session close of 1.3675. It will be interesting to see how the price reacts around this level has it has been used as both support and resistance since.

The indicators are obviously bullish at the moment. The MACD histogram is green and the signal lines are above zero. The Relative Strength Index is close to being overbough but there is still room to the upside for some more bullishness.

Overall it is hard to see this trend ending anytime soon. Brexit negotiations have taken a break for next week and the main event will be the US jobs report. There is still some PMI's during the week to keep us busy but the non-farm payroll (NFP) reading will be the main event.

Additional levels

GBP/USD

Overview
Today last price	1.3334
Today Daily Change	0.0133
Today Daily Change %	1.01
Today daily open	1.3201

Trends
Daily SMA20	1.3111
Daily SMA50	1.2802
Daily SMA100	1.2615
Daily SMA200	1.2727

Levels
Previous Daily High	1.3285
Previous Daily Low	1.3161
Previous Weekly High	1.3267
Previous Weekly Low	1.3059
Previous Monthly High	1.317
Previous Monthly Low	1.236
Daily Fibonacci 38.2%	1.3208
Daily Fibonacci 61.8%	1.3238
Daily Pivot Point S1	1.3147
Daily Pivot Point S2	1.3092
Daily Pivot Point S3	1.3023
Daily Pivot Point R1	1.327
Daily Pivot Point R2	1.3339
Daily Pivot Point R3	1.3393

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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