Technical Analytics Report

GBP/USD Fundamental Analysis 11 Feb 2021

 

Current trend: GBP/USD: the pound continues to strengthen. This week, the pair continues to grow. 

The British economy is pressured by the effects of the pandemic and the negative factors of Brexit. According to the British Chamber of Commerce (BCC), 49% of exporters have faced serious problems since January due to additional border controls. Bank of England head Andrew Bailey said yesterday that Brussels could cut off the UK from financial markets if it refuses to comply with European rules. This will entail a blow to the economy significantly dependent on finances. However, these factors cannot outweigh the optimism associated with widespread vaccination. 

USD is pressured by weak inflation data and comments from Fed Chairman Jerome Powell. In January, the CPI rose from 0.2% to 0.3%, but the core indicator, instead of rising by 0.2%, fell to 0.0%. Powell gave a pessimistic assessment of the labor market. According to him, the true unemployment rate in the USA is now not 6.3%, but about 10%. Generally, the labor market continues to require aggressive support from the government and the regulator.

 Support And Resistance

 The price is consolidating near 1.3855 (Murrey [3/8]), a breakout of which will give the prospect of growth to 1.3977 (Murrey [5/8]) and 1.4038 (Murrey [6/8]). A breakdown of the midline of Bollinger Bands (1.3794) may cause a correction to 1.3695 (lower line of Bollinger Bands). Technical indicators don’t provide a clear signal: Bollinger Bands are directed upwards, Stochastic is pointing downwards, and MACD histogram is declining in the positive zone.

 Resistance levels: 1.3855, 1.3977, 1.4038.

Support levels: 1.3794, 1.3695.

 Trading tips

 Long positions may be opened above 1.3855 with targets at 1.3977, 1.4038 and stop-loss at 1.3790. Implementation period: 5-6 days.

 Short positions may be opened below 1.3794 with the target at 1.3695 and stop-loss at 1.3860.

 Scenario

 Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 1.3860

Take Profit: 1.3977, 1.4038

Stop Loss: 1.3790

Key Levels: 1.3695, 1.3794, 1.3855, 1.3977, 1.4038

 Alternative Scenario

 Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 1.3790

Take Profit: 1.3695

Stop Loss: 1.3860

 

Key Levels: 1.3695, 1.3794, 1.3855, 1.3977, 1.4038

 

 

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