GBPUSD -Strong weekend finish

GBPUSD (1H) - short term bullish bias

Following the rally on 11 November, the cable met strong buying interest near the 61.8% (1.2820) retracement level. The price finally emerged on the upside after three days of consolidation. A series of higher highs broke the major resistance level of 1.2880 while the faster moving average crossed above the slower one, in a textbook bullish move. We expect the pound to sustain the momentum and reach 1.2940. The averages and the trend line would provide support in case of a pullback.

Key support: 1.2860
Key resistance: 1.2940