GBP/USD tumbled more than a penny from Thursday's 2021 trend high at 1.3712 nL1N2JQ160 as risk markets went into retreat, but cable's relatively shallow pullbacks lately, combined with reliable recent support at the 21- and 30-day moving averages should bolster sterling bulls' confidence.
The pound has struggled to hold above 1.37 in this month's rally as expectations of 2021 dollar weakness have yet to pan out.
But, the bulk of end-2020 positions were held in EUR/USD and to a lesser degree the yen 1097741NNET.
Recent weakness in the euro and yen have been accompanied by relative strength in GBP, AUD and CAD.
The redistribution of short USD positioning, away from the euro 1099741NNET, may continue to push the pound higher while success in UK lockdowns -- despite near-term economic pain -- and the removal of Brexit-related obstacles could potentially resuscitate UK growth.
GBP/USD's bullish structure remains intact above 1.3451, the 50% Fib of 1.3190-1.3712.
A rise above 2021's 1.3712 high would put upper 30-day and weekly Bolli's at 1.3740 and 1.3757 and the April 27, 2018 weekly high at 1.3792 in sharper focus.
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