GBP / USD bullish attempts remain capped below 1.3360 / 80

• GBP / USD capped below 1.3360 / 80, stable above 1.3300
• The pound is still offered amid risk appetite.
• The rally of the British pound will be capped below 1.3422 – Commerzbank.

The pound it is trading higher for the third day in a row on Tuesday, up 0.12% against the US dollar at the time of writing, although the bulls lack tracking above 1.3360 / 80. On the downside, the pair remains stable above 1.3300 at its highest levels in nearly three months.

The pound remains offered amid positive market sentiment

Upbeat news about AstraZeneca’s COVID-19 vaccine progress has boosted investor sentiment, pushing the pound higher against its main rivals. Hopes that a cure for the pandemic can be developed over the next few months have been especially favorable to the GBP, as the UK has been one of the countries hardest hit by the pandemic.

In addition, the market continues to rely on a Brexit deal, as representatives from the United Kingdom and the European Union continue to negotiate, with the aim of bringing closer positions on controversial issues with less than six weeks until December 31, the day on which post-Brexit transition period ends.

GBP / USD capped below long-term downtrend line at 1.3422 – Commerzbank

Commerzbank’s currency analysis team expects the current rally in the British pound to be capped below trend line resistance at 1.3422: “GBP / USD has broken to the upside and is on its way to further resistance. offered by the multi-year downtrend of 1.3422 and we expect this to ideally cap the market and cause failure. This is reinforced by the high of 1.3515 in December 2019. This is a long-term pivot and both levels represent great resistance. “

Technical levels