GBP/USD: upward trend
15 January 2021, 11:40
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 1.3710 |
| Take Profit | 1.4000 |
| Stop Loss | 1.3600 |
| Key Levels | 1.3210, 1.3505, 1.3710, 1.4000 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.3505 |
| Take Profit | 1.3210 |
| Stop Loss | 1.3600 |
| Key Levels | 1.3210, 1.3505, 1.3710, 1.4000 |
Current trend
The pair GBP/USD is showing an uptrend, trading at 1.3670.
Yesterday British Secretary of State for Transport Grant Shapps announced that the UK will cut off flights with Brazil and other South American countries, as well as with Portugal starting this Friday. The reason for this decision was the discovery of a new strain of coronavirus in Brazil. In the UK itself, the situation continues to deteriorate. Yesterday, a new record for mortality from coronavirus was recorded there: 1,564 people died in a day.
USD retreated slightly from yesterday's highs and is showing neutral dynamics. One of the negative factors was an unexpected decrease in the yield on short-term US Treasury bills. Three-week bonds were placed at 0.075%, which is lower than the previous value of 0.080%, and eight-week bonds were placed at 0.080%, which is also lower than 0.085% at the previous placement.
Support and resistance
Globally, the pair continues to trade within a wide sideways channel, being in the middle of the range. Technical indicators are in a state of global purchase. The fast EMAs of the Alligator indicator are above the signal line, and the histogram of the AO oscillator is in the positive zone.
Resistance levels: 1.3710, 1.4000.
Support levels: 1.3505, 1.3210.
Trading tips
If the asset continues growing and the price consolidates above the local resistance at 1.3710, long positions will be relevant with target at 1.4000. Stop-loss – 1.3600. Implementation time: 7 days and more.
If the asset reverses and declines and the price consolidates below the local support level at 1.3505, short positions can be opened with the target at 1.3210. Stop-loss – 1.3600.
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