Cable eyes firm break above 1.3700, pushes to highest levels since May 2018

Technical Analysis

GBP/USD climbs to a high of 1.3730, its highest level since May 2018

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The push higher in cable comes as we see a further breakdown in EUR/GBP to start the session, with the pair slipping to 0.8832 – its lowest levels since May last year – as price threatens to break key support at 0.8866-67 more firmly as well as the confluence of its key weekly moving averages @ 0.8834-37. More on that here.

This has underpinned cable to fresh highs since May 2018, as pound buyers are threatening a firm break above 1.3700 again after having failed several times to start the year.

Hold a close above and that sets up a nice and steady platform for cable to look for further gains with little in the way of a potential push towards 1.4000 next – at least from a technical perspective currently.

The dollar is also keeping lower and that is providing an added impetus for cable to keep a push higher on the session, so that’s another potential tailwind to consider.

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