12.01.202109:29 Forex Analysis & Reviews: Hot forecast for GBP/USD on January 12, 2021

The currency market is revolving around the main topic: Donald Trump's next impeachment. The US dollar continued to strengthen its positions on Monday, but then it rapidly began to lose its position after the Democratic Party published the text of the impeachment resolution. As a result, the pound strengthened quite noticeably. Although Donald Trump will leave the post of the US president in a week, the Democratic Party still intends to carry out impeachment, allegedly because he is still a threat to national security, democracy and the constitution. In this case, the resolution will be submitted to the Congress on January 13 and the vote on this issue will be held on January 14.

In general, it can be seen that the political tensions in the United States are not declining, instead it is showing signs of growth. Unfortunately, this does not contribute too much to confidence in the future, which is so important for investment and capital security. Therefore, the US dollar's noticeable weakening is quite justified.

Exchange Rates 12.01.2021 analysis

A certain lull is expected in this issue today, since the Congress will only start considering it tomorrow. So, we can expect a certain rebound, as the pound's growth is clearly speculative, like all other political factors. Nevertheless, the US dollar is unlikely to recover all its losses yesterday. The fact is that data on open vacancies in the US are published today. The total number of which should decline from 6,652 thousand to 6,300 thousand. The US labor market shows once again that it is losing its recovery pace amid the recent reduction in the total number of jobs shown in the United States Department of Labor report. Moreover, the unemployment rate is still quite high, which will hold back the potential for a stronger dollar.

On the other hand, British issues associated with the trade agreement between London and Brussels should also be remembered. In the United Kingdom, there is a rising business dissatisfaction with its conditions, and if this issue is scheduled again today, then the pound will inevitably begin to lose its positions. But it all depends on the information flow.

Job Openings (United States):

Exchange Rates 12.01.2021 analysis

The GBP/USD pair reached a variable support level of 1.3450, during the correction movement from the peak of the medium-term upward trend. A stop occurred with a subsequent rebound of 1.3450 - - - > 1.3533. Now, the pound's overbought status remains on the market, which keeps the risk of further decline.

The market dynamics still shows high activity, where the daily indicator on a stable basis exceeds the level of 100 points, which indicates high speculative mood among traders.

Based on the quote's current location, we can see a consolidation move in the range of 1.3503/1.3533, which can become a cumulative process.

Considering the general daily trading chart, it can be seen that the quote is still at the conditional peak of the medium-term upward trend.

It can be assumed that the range of 1.3503/1.3533 will be broken soon. If we proceed from the previously planned corrective move, then the downward interest may resume in the market in the direction of 1.3450-1.3425.

From the point of view of a comprehensive indicator analysis, we can see that technical instruments on the hourly and daily time frames signal a sale due to the correction stage in the market.

Exchange Rates 12.01.2021 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Dean Leo,
Analytical expert
InstaForex Group © 2007-2021
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