GBPUSD consolidating near cycle highs

02/02/2021

The greenback was trading broadly higher on Tuesday, but the GBPUSD pair remained flat during the London session, trading at around 1.3660.

It looks like the GBPUSD pair is losing steam amid the broad US Dollar strength. The resistance near 1.3750 remains intact, and as long as the cable trades below that level, the short-term outlook seems bearish. 

The intraday support could be near 1.36, and if not held, the cable could drop toward 1.35.

More importantly, there is a long-term uptrend line currently near 1.3430, which could be tested if the USD strength persists. The GBPUSD pair needs to stay above this line to keep the uptrend alive. Otherwise, we might see a sharper pullback toward 1.32.

Should the pair rise above the 1.3750 resistance, the uptrend would be confirmed with the next target at the psychological 1.40 zone. 
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