- February 23, 2021
- Posted by: Analysis Team
- Category: Forex News
- GBP/USD picks up towards refreshing the highest levels since April 2018.
- Sustained trading beyond the key horizontal area, ascending trend line amid bullish MACD favor buyers.
- The 1.4000 threshold, early-month top guards immediate downside.
GBP/USD remains on the front foot for the seventh consecutive week, currently up 0.10% intraday to 1.4075, during Tuesday’s Asian session. In doing so, the bulls attack the highest levels since April 2018, flashed the previous day, ahead of the UK employment report for January.
While the forecasts suggest improvement in the UK jobs report, any disappointment can’t be ruled out as this includes the lockdown period.
It’s worth mentioning that the cable bulls have gained a pass to the 2018 top ever since they crossed a horizontal area comprising multiple highs marked since May 2018.
Also adding to the upside momentum could be the bullish MACD and an upward sloping trend line from March 2020.
Hence, the GBP/USD has fewer hurdles to the north, barring the February 2018 peak near 1.4150, before the quote attack three-year top near 1.4375.
Meanwhile, pullback moves can eye the 1.4000 threshold but January tops near 1.3750 can challenge the GBP/USD sellers.
Even if the sterling bears manage to conquer the 1.3750 support, they will have a tough time before clearing the key support near 1.3550 and the started horizontal zone near 1.3490-1.3515.
GBP/USD WEEKLY CHART