GBP/USD: Risk Mode Keeps Cable Inflated for Renewed Attack at 1.34 Resistance Zone

Technical analysis of Forex market

Cable continues to tick higher and looks for fresh attack at 1.34 barrier, after Monday’s attempt was strongly rejected.

The sentiment remains positive as start of transition of power in the White House and growing optimism for Covid-19 vaccine boosted risk appetite, while hopes for EU/UK trade deal persist, as EU’s official pointed to genuine progress in talks, although no-deal scenario remains possible.

Price action moved into the upper side of bullish channel from 1.2675 (23 Sep low) and needs clear break of 1.34 zone (round-figure resistance / bear-trendline from 2007 peak at 2.1161), after several attempts failed here (Dec 2019 spike to 1.3514, but close below 1.3400 and September’s surge to 1.3482 and repeated failure to register close above 1.3400 pivot).

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Eventual break higher would open targets at 1.3482 (2020 high) and 1.3514 (Dec 2019 peak).

Bullish momentum is weakening on daily chart and warning that bulls may face strong headwinds here again, but markets will focus on the outcome from Brexit talks, pound’s key driver.

Res: 1.3397; 1.3450; 1.3482; 1.3514
Sup: 1.3331; 1.3291; 1.3261; 1.3195