Cable easily climbs back above the 1.34 handle
That will give buyers more confidence during the week to go searching for a break higher in challenging the key resistance levels highlighted above.
They are the same levels that capped gains from last week i.e. 61.8 retracement level @ 1.3453 and key trendline resistance @ 1.3464. Also, be wary of the key psychological resistance and offers around the 1.3500 handle as well.
Those will be the key spots to watch out for the pound this week and if buyers can cement a move above that, they can build towards 1.3700 or 1.3800 thereafter.
For now though, I'd expect a bit of two-way action where the pound gains before some profit-taking activity near key levels. But sentiment is quite clear since the election and that is preferably to buy-on-dips still at this stage.
