(DAILY NOTION) GBP/USD Likely to Test the 1.3500 Support Zone, Next Mover: Latest Developments on the U.S. Political Front

Illustration photo of GBP/USD daily chart from Tradingview

GBP/USD is currently trading around 1.3490, trying to settle below the support at 1.3500. 

The Non-Farm Payrolls (NFP) data reported that the U.S. economy lost 140,000 jobs in December. This report signals a red flag that it needs additional stimulus. Interestingly, despite strong U.S. stimulus expectations, the dollar continues to rebound. It looks like the rising yield in the U.S. government bonds providing some support to the dollar.

As for today, there isn't any market-moving economic data scheduled to be released from the U.S. and the UK. Investors will be focus on the latest U.S. political development. Before Trump's term ends due to the recent unrest in Washington, Democrats want to push Trump out of the office, but it remains to be seen whether they have enough time to complete any moves.

It is possible to gain additional downward momentum in the short-term in case the right catalysts emerge as the RSI indicator currently at the moderate territory. As reported by Vladimir Zernov, He pointed out that GBP/USD will move towards the next support level at 1.3450 if manage to test and declines below the support level at 1.3485. It will push GBP/USD to the next support level at 1.3415 if it moves below 1.3450.

Besides that, on the upside, he pointed out that the next resistance level for GBP/USD will be located at 1.3530 or 1.3540. GBP/USD will move towards the resistance level at 1.3575 if manage to above the resistance level at 1.3540.

FOLLOWME GBP/USD Overall Sentiment (As of 03:40 p.m., Jan 11, 2021),

Short - 60.03%

Long - 39.97%

For information please refer to Vladimir Zernov.