For Traders

Analytical Reviews

Technical analysis

04.01.202113:51 Forex Analysis & Reviews: GBP/USD Hot Forecast , 4 January 2020

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

GBP/USD is trading below 1.37, riding on an extension of late 2020's dollar decline. The pound sterling is shrugging off concerns of Brexit jitters and the increase in COVID-19 cases in the UK. PM Johnson is pressured to enact a new nationwide lockdown.

The Relative Strength Index on the four-hour chart is just below 70 (near overbought conditions).Upside momentum remains significant, yet off the highs. The pair remains above a 2 week old ascending trend-line, a bullish sign.

All in all, cable has limited room to rise, the resistance is at the daily high of 1.3700 critical round figure mark, which is also the highest since 2018. Next resistance awaits at 1.3730 and 1.3810, levels last seen nearly three years ago.

On the flip side , Support awaits at 1.3600, a swing high point around Christmas and would probably trigger a more extensive correction and bring the key support at 1.3600 into focus, followed by 1.3525 that capped the pair last week. Further down south , 1.34 await GBP/USD.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.