empty
 
 
21.01.2021 03:42 PM
Analysis of GBP/USD, January 21. UK sees record number of new coronavirus cases

This image is no longer relevant

The section of the trend, which originated on September 23, took a five-wave form. The internal wave structure of wave 5 in 5 still may change as well as the entire wave 5. Nevertheless, the section of the upward trend has been coming to its end for a long time. The demand for the pound sterling remains quite high. If it breaks above the previous high (near the 37 pattern), it may lead to a new complication of the uptrend.

This image is no longer relevant

On the chart, the wave marking has undergone certain changes. Additionally, it may change again. At the moment, the pound sterling may resume the upward movement within the 5 in 5 in 5 wave. At the same time, the wave marking of the 5 in 5 wave looks quite ambiguous. If it breaks above the 127.2% Fibonacci level, the pound sterling will gain momentum.

Yesterday demand for the British currency stirred up amid UK inflation data but only for a few hours. Then it bounced off its highs losing about 90 basis points. However, at the moment, the pound sterling has returned to the 37 pattern again. Today, it may attempt to break it again. Meanwhile, news from the UK ais rather grim. On January 20, 1,610 people died from the coronavirus in the UK, the biggest figure reported in a single day since the pandemic began. Despite the fact that the spread of the virus has been decreasing again in recent days, people continue to die. The government has already started vaccination. It plans to vaccinate the entire adult population of the UK by September this year. The strict quarantine also remains in force but so far these measures have not affected the death rate. There have less new coronavirus cases recently. According to the Johns Hopkins University, about 40,000 new cases have been registered in the UK, down by 20,000 in comparison with the peak of the third wave.

Andrew Bailey said that the impact of quarantine restrictions and the new wave of coronavirus is no longer so destructive for the economy. It is just not as harmful as it has been recently. Earlier, Andrew Bailey said that negative rates are unlikely to be introduced in the near future. "It is going to take time because there's quite a lot of technical complexity," he pointed out. Today the UK will not unveil any economic data, while the US will release its initial jobless claims report. Last time, the reading unexpectedly exceeded the forecast's value. If it occurs again, the pound sterling and the euro will gain ground.

Recommendations:

The GBP/USD pair may resume an upward movement at any time. So, I recommend opening long deals on the GBP/USD pair if it breaks above the 127.2% Fibonacci level with targets located near the 40 pattern within the framework of the expected 5 in 5 in 5 wave of the upward movement. If it fails to break above this level, it will rebound from its highs.

Chin Zhao,
Analytical expert of InstaForex
© 2007-2024
通过InstaForex赚取加密货币汇率变动的收益。
下载MetaTrader 4并开启您的第一笔交易。
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

推荐文章

现在无法通话?
提出您的问题,用 在线帮助.
Widget callback