GBP/USD: waiting for new drivers 03 February 2021, 11:55

GBP/USD: waiting for new drivers

03 February 2021, 11:55

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.3665
Take Profit	1.3375
Stop Loss	1.3777
Key Levels	1.3282, 1.3325, 1.3750, 1.3825

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.3325
Take Profit	1.3750
Stop Loss	1.3184
Key Levels	1.3282, 1.3325, 1.3750, 1.3825

Current trend

Investors' attention is focused on tomorrow's decision by the Bank of England on the interest rate and the quantitative easing program. The rate is expected to remain at 0.10%, and the volume of the quantitative easing program may remain at GBP 875B.

The increase in the pace of the vaccination campaign affects GBP positively. At the start of the week, 15 out of 100 people were vaccinated against COVID-19 in the UK, compared with 10 in the US and just 3 in the EU.

USD gains short-term support amid discussions on a USD 1.9T stimulus program for the US economy. Joe Biden intends to advance the previously announced "American Rescue Plan" by joining forces with Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi, despite opposition from Republicans who consider the proposed package of measures too expensive.

Both currencies are now strong, so the GBP/USD pair is in anticipation of new drivers. The programs for overcoming the crisis proposed in both countries are becoming a priority. Today at 15:15 (GMT+2) data on ADP Nonfarm Payrolls will be published in the US. Positive statistics may support USD.

Support and resistance

The price is trading below the resistance level of 1.3750. The RSI index is in the neutral zone. Key support for the medium-term uptrend is at 1.3325–1.3282. The resistance area of 1.3750–1.3700 has not been broken through, so a correction to the key support level may be expected, and new purchases from it may be considered.

Resistance levels: 1.3750, 1.3825.

Support levels: 1.3325, 1.3282.

Trading tips

Short positions may be opened from 1.3665 with target at 1.3375 and stop-loss at 1.3777. Implementation period: 5-7 days.

Long positions can be opened from 1.3325 with target at 1.3750 and stop-loss at 1.3184.