GBPUSD extends to new seven-week high
Cable maintains positive tone on Monday and broke through previous high at 1.4218, hitting new 7-week highs.
Firm break above cracked upper boundary of daily bull-channel (after two attempts last week failed) was bullish signal which adds to firm bullish tone from daily techs and overall positive sentiment following last week’s announcement of progress in Brexit talks.
Fading risk aversion on US-China talks which showed some positive signals, helped bulls to extend higher and open way towards next targets at 1.4277 (01/02 Feb double-top), with stronger acceleration to extend towards key barrier at 1.4345 (the highest of post-Brexit recovery).
Close above 1.4218 is needed to generate bullish signal and support further advance.
Broken bull-channel upper trendline now acts as strong support (1.4176) which is expected to keep the downside protected.
Res: 1.4277; 1.4300; 1.4345; 1.4400
Sup: 1.4218; 1.4176; 1.4144; 1.4129