Cable extended Friday’s bounce and rose above 1.39 mark in early European trading on Monday but continues to trade within daily cloud (1.3844/1.3957) which started to narrow and will twist later this week.
Break of cloud top would generate bullish signal for renewed attack at psychological 1.40 barrier, above which the pound last traded two months ago.
Revived bullish momentum and daily moving averages in positive setup underpin fresh advance, but mixed fundamentals sour the sentiment.
British minister denied media report that PM Boris Johnson said he would rather let bodies pile high in thousands than order a third economic and social lockdown.
On the other side, BoE’s Deputy Governor Broadbent said he expects very rapid UK growth next couple of quarters.
Res: 1.3928, 1.3949, 1.3957, 1.4000.
Sup: 1.3900, 1.3879, 1.3862, 1.3844.
