Cable Is Ticking Higher In A Wedge Formation

is at the highs, approaching the upper side of a wedge once again after  Boris Johnson’s mentioned that they are confident of their coronavirus vaccine supply chains.  However, this can be only temporary “bullish impact”. I still think that pound strength will slow down for a higher degree setback after BREXIT deal was reached between EU and UK. But it can be “buy the romor sell the news” game here but not just yet.

Technically speaking we see pair making a wedge so it appears that ending diagonal on 4h chart can still be unfolding, but it can be moving into a very strong resistance. Ideally, that’s now final part within wave 5) that can be looking for resistance at 1.38 area. An impulse  back below the trendline and 1.3516 support will confirm a top in place.

At the same time, keep an eye on stocks which could see more weakness after recent events and sharp drop yesterday that could be bullish for the USD if SP500 will finish the week below 50 daily SMA.

4h gbpusd
4h gbpusd
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