GBP/USD: the pair is kept near record highs 29 January 2021, 10:58

 

GBP/USD: the pair is kept near record highs

29 January 2021, 10:58

Scenario
Timeframe	Intraday
Recommendation	SELL STOP
Entry Point	1.3645
Take Profit	1.3552
Stop Loss	1.3700
Key Levels	1.3552, 1.3600, 1.3650, 1.3700, 1.3760, 1.3834, 1.3900

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.3765
Take Profit	1.3900
Stop Loss	1.3700
Key Levels	1.3552, 1.3600, 1.3650, 1.3700, 1.3760, 1.3834, 1.3900

Current trend

GBP is trading with a downtrend against USD in trading in today's Asian session, correcting after a moderate increase the day before, which did not lead to another renewal of all-time highs for the instrument.

Macroeconomic statistics from the USA published on Thursday turned out to be moderately negative. Annual data on US GDP for Q4 2020 showed a slowdown in the economy from +33.4% to +4% YoY, which, however, fully justified the forecasts. Such a sharp decline is associated with the coronavirus crisis, which forces the authorities to maintain restrictions on business operations and desperately spend money to support the population.

At the same time, Initial Jobless Claims for the week ending January 22 showed a decrease from 914K to 847K, which turned out to be better than market expectations at 875K. Continuing Jobless Claims for the week of January 15 decreased from 4.974M to 4.771M, with the forecast for growth to 5.054M.

Support and resistance

Bollinger Bands in D1 chart show moderate growth. The price range narrows slightly from below, indicating the multidirectional nature of trading this week. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic is showing similar dynamics, slowly retreating from the level of "80". The current readings of the indicators indicate the possibility of a corrective decline in the ultra-short term.

Resistance levels: 1.3760, 1.3834, 1.3900.

Support levels: 1.3700, 1.3650, 1.3600, 1.3552.

Trading tips

To open short positions, one can rely on the breakdown of 1.3650. Take-profit – 1.3552. Stop-loss – 1.3700. Implementation time: 2-3 days.

The return of the "bullish" trend to the market with the breakout of 1.3760 may become a signal for new purchases with the target of 1.3900. Stop-loss – 1.3700.