GBPUSD Stays Visibly Bullish Towards 1.3700 Level As Brexit Relief Boosts Pound

GBPUSD Stays Visibly Bullish Towards 1.3700 Level As Brexit Relief Boosts Pound

GBPUSD Price Analysis – January 3

GBPUSD has sustained its positive tone into the new year while holding on to gains towards the 1.3665 level, a fresh multi-year high set. The Pounds stays supported by relief after the post-Brexit deal just one week before the end of the transition period.

Key Levels
Resistance Levels: 1.3900, 1.3800, 1.3700
Support Levels: 1.3429, 1.3300, 1.3177
GBPUSD Long term Trend: Ranging
GBPUSD is currently trying to breach resistance at the 1.3700 level. The rising moving average of 5 continues to support intact bullish price action. However, a convincing breach of the mentioned resistance can still accelerate the price to the high zone of 1.3800.

In the long term, the focus remains on the growth side. A sustained breach beyond may validate a long-term bottom at 1.1411. An increase from there can be either a correction or the start of a long-term uptrend. In any event, the next aim is a 38.2% rebound from 2.1161 to 1.1409 at 1.5134.
GBPUSD Short term Trend: Bullish
The GBPUSD pair rose from the 1.3177 level and broke the 1.3624 level. But since a temporary high has formed after the initial barrier at 1.3665, the initial bias is bullish initially this week. On the other hand, a break below 1.3624 may aim for a reversal trend from 1.3665 to 1.3429 from 1.2675 to 1.3177 levels.

In such a scenario, short-term sentiment may stay ranging as long as support level 1.3177 remains intact, in a steeper pullback scenario. Meanwhile, some subsequent sell-offs could leave the GBPUSD vulnerable to further slide beneath 1.3500 towards the 1.3429 congestion zone.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.