GBP / USD retains a more bullish bias in the short term, but gains remain limited by the handle of 1.3700 trading this week
While the dollar has been struggling a bit lately, the pound also remains more resilient as we see the cable testing Jan 4th highs near 1.3700 yesterday.
The upward push stalled at the key level before retreating to the swing region around 1.3620-30 as buyers continue to maintain a more short-term bullish bias in the pair.
The key near-term region to watch in this regard is the confluence of the major hourly moving averages at 1.3590-94, the focus of Powell and Biden’s speeches today.
The pound side of the equation is basically that, because in the quid we manage to dismiss economic concerns regarding the UK viral situation and the post-Brexit ordeal.
It all depends on the dollar side of the equation for now as we look into the upcoming trading day and the major risk levels can be defined and limited on either side as above.