GBP/USD trades at its highest levels since April/May 2018
The high today hit 1.3788 and that was the highest level since 30 April 2018 but gains have eased a little in European morning trade to 1.3760 levels.
The technical picture looks to be shaping up rather well for cable as the pound has fought off much of the dollar resilience to start the new year.
Cable now looks poised for a more solid break above key trendline resistance from the March to September highs last year as buyers eye the 1.3800 level after shaking off some near-term resistance around 1.3760.
Despite UK economic fundamentals still being rather questionable post-Brexit, the market remains more focused on two things right now.
That being the UK is set to emerge as one of the frontrunners in the vaccination race and also the BOE having shelved the idea of negative rates - opting to communicate a message that it is an insurance policy instead.
That has kept the pound flourishing to start the year and with cable looking towards 1.3800 and breaking key technical resistance levels pointed out above, 1.4000 is a likely destination as the dollar is starting to run into some trouble this week.
The pound outperformance is also rather evident in EUR/GBP as the pair is down 1.8% on the year after having breached key support at 0.8866-67 last month.
