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GBP/USD firm well above 1.3400

12/29/2017, 10:42:51 AMTrading Strategies
GBP/USD firm well above 1.3400

The GBP/USD pair had the best day in more than a week. On Wednesday cable offered bullish signals, after rising above 1.3400. The pair broke on top of 1.3420 during Thursday and rose to 1.3455, the highest level in two weeks. 

Since the European session, the pair is moving in a small range between 1.3430 and 1.3455, consolidating weekly gains, amid another quiet session. Markets are on a  holiday mode and price action is likely to remain limited until the end of the week/month/year. 

GBP/USD Technical outlook 

“The pair heads into the Asian session with a bullish stance, although it still needs to break above the 1.3465 region, where it has multiple intraday highs from early December to be able to advance further”, says Valeria Bednarik. 

According to her, in the 4 hours chart, technical readings support another leg higher, as technical indicators head north above their mid-lines, with the Momentum firming up, but the RSI still below its previous daily highs. “In the mentioned chart, the 20 SMA turned modestly higher around 1.3390, but is overall neutral, as its holding within its last two weeks' range.”