GBP/USD Price Analysis: Cable is about to hit is highest weekly close this year
- GBP/USD is trading 1% higher on Friday after another bullish close.
- The pair hit its highest level his year at 1.3357 as the bulls take hold.
GBP/USD weekly chart
Cable has hit its highest level this year as the USD capitulation continued this afternoon. AUD and NZD were the only other majors to beat the pound but JPY also flipped flopped in 3rd place on Friday. As Powell's update yesterday failed to inspire any dollar bulls it will be interesting to see if next week's NFP data can change the course of the fledgeling greenback.
Looking at the chart now the next resistance zone is at the 1.3515 wave high from 13th December 2019. Since that point, GBP/USD moved to hit a low of 1.1414 in March 2020 and it's hard to believe the price is where it is today.
Interestingly the price is also heading to the 24th June 2016 UK referendum session close of 1.3675. It will be interesting to see how the price reacts around this level has it has been used as both support and resistance since.
The indicators are obviously bullish at the moment. The MACD histogram is green and the signal lines are above zero. The Relative Strength Index is close to being overbough but there is still room to the upside for some more bullishness.
Overall it is hard to see this trend ending anytime soon. Brexit negotiations have taken a break for next week and the main event will be the US jobs report. There is still some PMI's during the week to keep us busy but the non-farm payroll (NFP) reading will be the main event.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
