Cable extends gains on softer dollar as buyers start to eye 1.4000 level

Upwards and onwards for cable as price climbs to 1.3846 currently

GBP/USD W1 10-02
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The weaker dollar this week has certainly spurred the upside momentum in cable as we see price action look to finally break key trendline resistance @ 1.3741 and more importantly hold a firm break above the 1.3800 handle.

Going by the chart alone, 1.4000 is the next target for the upside move as there isn’t anything stopping buyers from chasing that from hereon.

The dollar is once again holding softer across the board, with EUR/USD moving up to 1.2040 while USD/JPY is down to 104.45 at the moment.

Keep an eye on the latter as a break below the 100-day moving average @ 104.40 could exacerbate a further drop in the greenback in trading this week.

Going back to cable, there’s really nothing not to like with the chart. Meanwhile, pound fundamentals are also shaping up rather well as the market keeps its focus on UK vaccinations and the BOE making clear that negative rates are an insurance policy.

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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