GBP/USD Outlook: Bulls Pressure 1.34 Barrier And Eye 2020 High, Inflated By Rising Risk Appetite

Technical analysis of Forex market

Cable rises towards 1.34 barrier on Tuesday after strong upside rejection on Monday (1.3397 was new 11-week high), lifted by fresh risk appetite on signals that President Trump’s administration gave a green light for transition of duties to President-elect Biden.

Uptrend from 1.2675 (23 Sep low) remains intact but faces headwinds from offers at 1.3400, with break here to open way towards key barrier at 1.3482 (2020 high, posted on 1 Sep).

Bullish daily studies support the action but stochastic turned sideways just under the overbought border line, suggesting that bulls may consolidate before resuming.

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Broken Fibo barrier at 1.3291 (76.4% of 1.3482/1.2675, reinforced by rising 5DMA) offers solid support which should ideally contain dips.

Bulls penetrated thick monthly cloud (spanned between 1.3336 and 1.4560) and look for bullish signal on monthly close within the cloud.

Res: 1.3397, 1.3450, 1.3482, 1.3514.
Sup: 1.3309, 1.3291, 1.3244, 1.3195.