GBP/USD Price Analysis: Bulls yearning for a firm break above 1.3700

GBP/USD is building onto the recent recovery rally, as the bulls look to recapture the 1.3700 level amid persistent US dollar’s weakness and upbeat UK  |  20/01/2021 09:36
  • GBP/USD has more room to the upside, acceptance above 1.37 is critical.
  • Bulls remain in charge as long as the cable holds above 21-DMA.
  • The spot set to test rising channel resistance above 1.38 amid bullish RSI.

GBP/USD is building onto the recent recovery rally, as the bulls look to recapture the 1.3700 level amid persistent US dollar’s weakness and upbeat UK CPI figures.

Further, the UK’s incredible efforts of ramping up inoculations also seem to bode well for the pound, as the risk-on mood keeps it alive and kicking.

The cable has additional room for advances, as depicted by its daily technical chart. The price trends higher in a potential rising channel formation, with the immediate upside likely capped at 1.3700, the orange horizontal trendline resistance.

Acceptance above the latter is critical to resuming its journey towards the 1.3800 mark. Further up, the channel resistance at 1.3840 could be challenged, as the 14-day Relative Strength Index (RSI) remains firmly bullish, currently at 60.00.

The bullish bias remains intact so long as the price holds above the 21-daily moving average (DMA) at 1.3592.

A breach of the last could trigger a fresh sell-off, with the buyers eyeing the upward-sloping 50-DMA at 1.3451 to their rescue.

Read: GBP/USD Price Forecast 2021: Cable braces for calendar comeback amid three exits

GBP/USD: Daily chart

GBP/USD: Additional levels

 

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