GBP/USD is trading below 1.37, riding on an extension of late 2020's dollar decline. The pound sterling is shrugging off concerns of Brexit jitters and the increase in COVID-19 cases in the UK. PM Johnson is pressured to enact a new nationwide lockdown.
The Relative Strength Index on the four-hour chart is just below 70 (near overbought conditions).Upside momentum remains significant, yet off the highs. The pair remains above a 2 week old ascending trend-line, a bullish sign.
All in all, cable has limited room to rise, the resistance is at the daily high of 1.3700 critical round figure mark, which is also the highest since 2018. Next resistance awaits at 1.3730 and 1.3810, levels last seen nearly three years ago.
On the flip side , Support awaits at 1.3600, a swing high point around Christmas and would probably trigger a more extensive correction and bring the key support at 1.3600 into focus, followed by 1.3525 that capped the pair last week. Further down south , 1.34 await GBP/USD.
