GbpUsd Brakes Support Trendline

Updated: Jan 11

In the UK, the pandemic situation remains terrible (COVID statistics still report over 50,000 new cases a day), limiting expectations for a quick end to the lockdown, which is de facto hitting the economy. Additionally, we are after Brexit, which also complicates the situation. The pound however, remains unshakable, which may be a bit puzzling. Taking into account the relation of the GBPUSD yesterday it was easy for a stronger decline, taking into account the strengthening of the US currency in the broad market. Nevertheless, the support area at 1.3538 based on the former December 4 high remains intact.



What's next? The layout is more inclined towards a downward scenario. Additionally, two days ago price broke trendline drawn from December 22nd. The process of slowing down the earlier upward trend is therefore taking place with possible wedge formation building...


However, EurGbp looks more and more interesting with divergence formed on 4hr MFI chart.



DISCLAIMER - I hold long EurGbp exposure.


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Dominik Stone

Tokenhouse Yard

City Of London, EC2R 7AS

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