GBP/USD Breaks out Above Pennant Pattern

GBP/USD Daily Chart

Cable has broken out to the upside of a well defined pennant pattern on the daily chart amid news that Britain is very close to a Brexit transition deal with the European Union.

Resistance looms overhead at the prior highs of 1.4068 and above that 1.4143.

The uptrend line beneath forms support and price is well above the 200 period moving average (yellow) on the daily chart, reflecting that the bulls are in charge on this time frame.

RSI is sloping gently upwards, indicating upward momentum.

The UK Annual Budget and the US Consumer Price Index were both released at 8:30AM ET, CPI came out in line with expectations falling to 0.2%.