GBP/USD: GBP is in the uncertain state 14 January 2021, 12:19

 

GBP/USD: GBP is in the uncertain state

14 January 2021, 12:19

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.3675
Take Profit	1.3793, 1.3916
Stop Loss	1.3600
Key Levels	1.3305, 1.3427, 1.3550, 1.3671, 1.3793, 1.3916

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.3545
Take Profit	1.3427, 1.3305
Stop Loss	1.3640
Key Levels	1.3305, 1.3427, 1.3550, 1.3671, 1.3793, 1.3916

Current trend

Today the GBP/USD pair has corrected to 1.3630. GBP is currently influenced by opposite factors.

On the one hand, investors hope that the current increase in the incidence of coronavirus in the UK is at its peak and will soon be passed, facilitated by vaccination of the population. Prime Minister Boris Johnson said that quarantine measures are leading to positive results, but did not rule out a new tightening of them. On the other hand, business is facing the problem of implementing the new rules of the trade agreement with the EU. The rules are not yet fully fixed, which leads to delays in the movement of goods across borders and brings significant losses.

Political tensions in the USA do not contribute to the growth of USD. Yesterday, the House of Representatives voted to impeach Donald Trump, but the Senate is unlikely to support this initiative. US inflation data for December were positive. Consumer Price Index increased from 0.2% to 0.4% MoM and rose from 1.2% to 1.4% YoY, but the indicators are still far from the Fed's target levels.

Support and resistance

The price is at 1.3671 (Murrey [8/8]), a breakout of which will give the prospect of growth to 1.3793 (Murrey [+1/8]) and 1.3916 (Murrey [+2/8]). The key level for the "bears" seems to be 1.3450 (Murrey [7/8], center line of Bollinger Bands). In case of its breakdown, the decline will continue to 1.3427 (Murrey [6/8]) and 1.3305 (Murrey [5/8]).

Resistance levels: 1.3671, 1.3793, 1.3916.

Support levels: 1.3550, 1.3427, 1.3305.

Trading tips

Long positions can be opened above 1.3671 with targets at 1.3793, 1.3916 and stop-loss at 1.3600. Implementation period: 5-6 days.

Short positions can be opened below 1.3550 with targets at 1.3427, 1.3305 and stop-loss at 1.3640.