Overview: GBP/USD gathers pace to take recovery above 1.3400 heading into the London open, the greenback continues bulls to continue in the market. The bulls are trying to increase the demand in the market, as Optimism over the coronavirus vaccine and US fiscal stimulus continue to play out. The bulls are playing on a largely unchanged basis. A positively bullish pair is created in the market. The GBP/USD is the Forex ticker that shows the value of the British pound against the US dollar. It tells traders how many US dollar is needed to buy the British pound. the pair are having fresh highs after clearing the key Resistance. The pair shows the higher highs in the market as the market supporting the momentum. Pair shows the current movement towards the higher side in the market.
- Gbp/usd looks to regain 1.3400 as remains pressured
- Vaccine and stimulus hope, softer ADP data down the dollar. Brexit drama extends, as barnier says deal hangs in the balance.
TECHNICAL ANALYSIS: From the technical point of view we can say that market is showing its upside momentum in the market, the bulls are showing their aggression in the aggression in the market however yesterday we have seen a steep downfall in the morning session but at the end of the day we saw that bulls covered all the losses and headed to upside. Positive volatility is being created In the market. In the 4 hourly charts we can see that market is being traded with the full forces .yesterday the bullish engulfing is being created in the chart and we can say that market us taking the path towards the higher side.
The price pattern is also supporting the indicators as they are also rising above in the market. Also, we can see the divergence is being created in the chart the indicators are making lower lows and price pattern are creating the higher highs let wait for the moment and see what is actually the step of the market. As according to the trend the bulls are leading .so we suggest our buyers to go for short term buy in the market. The EMA lines are also supporting the trend as they are above SMA lines. But we still say buyers should go for buy on dips. The RSI is also above the 50 line and creating the bullish sign in the market as MACD is also above the zero line creating buy signals. Support of the level is 1.3241 followed by 1.3064 and Resistance will be 1.3530 followed by 1.3723
Trade Idea : Based on chart and studies above we would suggest to buy at 1.3400 target will be 1.3500 followed by 1.3600 and stop loss will be 1.3300.
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