GBPUSD will break out soon?
As GBP demand comes strong, it seems like it could break the current area sooner or later.
Fundamentals:
- UK implemented "Plan B" last year for their preparation for Omicron breakout and it seems to be really effective. It took them a hit at the time it was implemented as investors feared it will have a huge impact to their economy, but upon recovery, it played well with GBP
- Inflation rate is healthy
- Interest rates will be increased soon within Q1
- US recorded 1M cases today (Jan. 5), this will surely take a toll to this currency
- Strong opening for the year with USD, however, PMI data of US seems to be worse than before
Technicals:
- GBPUSD entering a strong supply area. The pair is reacting but with a minimal pullback from 38.2% fib
- Huge volume came in on Dec. 24, but after this day, marked its 1st breakout
- Looks like it is forming a reverse head and shoulder pattern. It could go down up to 1.34 area, for a healthy pull back, then break out the 1.358-1.36 area
- Otherwise, it can make it way to 1.37
Summary:
- Good for medium to long term hold
Position:
- Long
*Not a financial advise, just my personal analysis
Fundamentals:
- UK implemented "Plan B" last year for their preparation for Omicron breakout and it seems to be really effective. It took them a hit at the time it was implemented as investors feared it will have a huge impact to their economy, but upon recovery, it played well with GBP
- Inflation rate is healthy
- Interest rates will be increased soon within Q1
- US recorded 1M cases today (Jan. 5), this will surely take a toll to this currency
- Strong opening for the year with USD, however, PMI data of US seems to be worse than before
Technicals:
- GBPUSD entering a strong supply area. The pair is reacting but with a minimal pullback from 38.2% fib
- Huge volume came in on Dec. 24, but after this day, marked its 1st breakout
- Looks like it is forming a reverse head and shoulder pattern. It could go down up to 1.34 area, for a healthy pull back, then break out the 1.358-1.36 area
- Otherwise, it can make it way to 1.37
Summary:
- Good for medium to long term hold
Position:
- Long
*Not a financial advise, just my personal analysis
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