GBP/USD: updating record highs 24 February 2021, 09:59

GBP/USD: updating record highs

24 February 2021, 09:59

Scenario
Timeframe	Intraday
Recommendation	SELL STOP
Entry Point	1.4095
Take Profit	1.4000
Stop Loss	1.4160
Key Levels	1.4000, 1.4050, 1.4100, 1.4150, 1.4200, 1.4275, 1.4375

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.4205
Take Profit	1.4350, 1.4375
Stop Loss	1.4130
Key Levels	1.4000, 1.4050, 1.4100, 1.4150, 1.4200, 1.4275, 1.4375

Current trend

GBP maintains strong upside momentum against USD in the short term, hitting record highs since April 2018 during today's Asian session.

Investors reacted very optimistically to the televised address of British Prime Minister Boris Johnson, who announced the lifting of quarantine in the country closer to July. Meanwhile, the UK is steadily increasing the pace of vaccination, currently occupying the third place in the world. To date, more than a quarter of the total population has been vaccinated, and in the near future, the rate of vaccination is likely to only increase.

Today, investors are focused on the Monetary Policy Report Hearings, which is an important factor for the Bank of England's decision to further stimulate the national economy.

Support and resistance

Bollinger Bands in D1 chart show stable growth. The price range is expanding from above, but it fails to catch the surge of "bullish" sentiment at the moment. MACD indicator is growing, preserving a stable buy signal (located above the signal line). Stochastic, having reached its highs, reversed into the horizontal plane, indicating strongly overbought GBP in the ultra-short term.

A full-fledged downward correction for the instrument is possible towards the end of the current trading week.

Resistance levels: 1.4200, 1.4275, 1.4375.

Support levels: 1.4150, 1.4100, 1.4050, 1.4000.

 

Trading tips

To open corrective sales, one can rely on the instrument's rebound from the current resistance levels, followed by a breakdown of 1.4100. Take-profit – 1.4000. Stop-loss – 1.4160. Implementation time: 2-3 days.

New long positions may be opened after breakout of 1.4200. Take-profit – 1.4350-1.4375. Stop-loss – 1.4130.