GBP/USD: growth in a narrow range continues
27 January 2021, 10:50
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 1.3777 |
| Take Profit | 1.4000 |
| Stop Loss | 1.3650 |
| Key Levels | 1.3305, 1.3570, 1.3777, 1.4000 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.3570 |
| Take Profit | 1.3305 |
| Stop Loss | 1.3650 |
| Key Levels | 1.3305, 1.3570, 1.3777, 1.4000 |
Current trend
The GBP/USD pair is showing an upward trend, trading around the level of 1.3733.
The British currency strengthened significantly due to the publication of positive statistics on UK employment. According to the Bureau of National Statistics, the unemployment rate for November was 5.0%, below the projected 5.1%. The Claimant Count for December increased by 7.0K, which is significantly lower than the expected increase by 35.0K. Average wages for November rose 3.6%, well above the forecast of 2.9%.
The USD Index practically stopped near the key level of 90. Investors hope for a soon resumption of discussions on the $1.9 trillion measures proposed by US President Joe Biden. However, at the moment, the US Treasury Department is busy discussing a project to change the appearance of the $20 bill.
Support and resistance
Globally, the price moves within a narrow ascending channel along the global support line. Technical indicators are in a state of global buying and are gradually narrowing the range of fluctuations. The range of EMA fluctuations on the Alligator indicator is quite wide, and the histogram of the AO oscillator is trading in the positive zone.
Resistance levels: 1.3777, 1.4000.
Support levels: 1.3570, 1.3305.
Trading tips
After growth or consolidation above the local resistance at 1.3777, buy positions with the target at 1.4000 will be relevant. Stop loss is 1.3650. Implementation period: 7 days or more.
After reversal and continued decline or consolidation below the local support of 1.3570, it is relevant to open sell positions with the target at 1.3305. Stop loss is 1.3650.
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