Cable extends gains to start the session as pound keeps more perky

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD pushes to session highs above 1.3340

GBP/USD D1 23-11
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The pound is continuing to keep higher to start the session, with cable now rising near 1.3350 as there has been a few more positive news in the UK to start the week.

The mood music surrounding Brexit talks is continuing to fuel hopes for a deal in the coming days, while AstraZeneca's vaccine news is also providing some added light at the end of the pandemic tunnel.

Adding to that is the UK government set to confirm the end of lockdown on 2 December and revert back to a slightly tighter 'traffic light' system as before, with virus cases showing signs of plateauing; albeit still at a high base, similar to that at the end of October.

But going by the technicals, the pound is also in a good spot as we see cable crack the 1.3300 handle after having formed a double-top around the figure level last week.

There isn't much in the way of buyers from a move towards 1.3400 next with the 1 September high @ 1.3483 a key level to watch if the topside momentum extends.

Looking ahead, Brexit headlines will likely be the catalyst for any major make or break in pound sentiment this week so let's see what that has to offer in the coming days.

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