GBPUSD made a nice bullish rally last week but was halted on Friday when price consolidated and ended bearish 0.67% from the yearly high. From a sentimental perspective, the UK still remains in lockdown meaning no consumer activity in major sectors and this could be the cloud that rains on sterlings gains past 1.37! Any tones of lax-lockdown measures on the horizon could easily act as a stimulus to push sterling into levels above 1.37 but until then, the small DXY pullback will continue to act against GBPUSD .
This week, i'll be watching out for sterling/usd to fall into the mid 1.35 level (1.35150 - 1.35700) - Unlike last week, price currently sits at a rather undecided level so we will just have to remain patient and wait for sterling to make the next move before we act. I will hold onto my bearish
bias until i have reason to change...
Good luck trading this week.