- GBP/USD picks up bids towards the strong since April 2018, marked the previous day.
- Bullish MACD, rising channel and sustained break above 35-month low favor bulls.
- Sellers may not take risk of entries beyond 1.3470.
GBP/USD picks up bids to 1.3815 during early Wednesday. In doing so, the cable eyes to revisit the highest levels since April 2018, marked on Tuesday.
Given the bullish MACD signals and an upward sloping trend channel established since September 25, 2020, GBP/USD bulls are likely to keep the reins for some more time, for now
However, a confluence of the stated channel’s resistance line and low of early April 2018, around 1.3965-70, becomes a tough nut to crack for the buyers ahead of visiting the 1.4000 threshold.
During the quote’s sustained run-up past-1.4000, the year 2018 peak surrounding 1.4375-80 will be in the spotlight.
Meanwhile, the previous resistance line from December 2019 and the lower line of the aforementioned channel together restrict the GBP/USD bears’ entry around 1.3470.
Though the pullback moves targeting the 1.3700 and then the monthly low near 1.3565 can’t be ruled out.
GBP/USD weekly chart
Trend: Bullish
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