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Cable looks towards December highs as dollar continues to languish

GBP/USD sets its sight on the 1.35 handle

Cable encountered a bit of a setback in early trading yesterday but recovered well as the dollar faltered in US trading, helping to see the pound claw back earlier losses in a push above the 1.3400 level currently. If buyers can keep this momentum up and establish a close above 1.3400, it will set up a good platform to try and push towards the December high @ 1.3514. A break above that will likely set off further upside momentum in the pair, should the dollar continue to languish, as it will mark fresh highs for the pair since May 2018. From a technical perspective, there is little in the way between that and the 1.40 level next. Right now, the key story in the currencies market is the capitulation of the dollar and as we approach more key technical levels across multiple pairs, it is heaping further pressure on the greenback so far on the week.

Source: Technical analysis

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