(DAILY NOTION) GBP/USD Hovering Near Three-Year High at 1.3620, Next Mover: Biden's Stimulus Package Announcement

Illustration photo of GBP/USD daily chart from Tradingview

GBP/USD is currently trading around 1.3620, attempt to settle below the support level at 1.3625.

The GBP/USD is still trading near its 3-years high as investors optimistic about the Bank of England (BOE) will not move to negative interest rates. The two primary scenarios that push the GBP/USD to its 3-years high. First, the Brexit deal reached an agreement that prevents the UK from crashing out of the EU without a deal. 

Second, Andrew Bailey was also guarded on whether negative interest rates could be deployed to help boost economic growth. The negative interest rate would pressure the Sterling pound. Furthermore, UK still facing the challenge on the second outbreak of coronavirus pandemic. This could alert BOE to implement other dovish policies.

It is possible to gain additional 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 1.3575 if manage to test and declines below the support level at 1.3625. A successful test at the level of 1.575 will move GBP/USD to the next resistance level at 1.3560. The pair will continue to head towards the 1.3540 level if manages settles below the 1.3560 level.

Besides that, on the upside, GBP/USD possible to gain upward momentum in the near term. He pointed out that the next resistance level for GBP/USD will be located at 1.3665. If successfully test the resistance level at 1.3665, GBP/USD will move towards the recent highs at 1.3710.

FOLLOWME GBP/USD Overall Sentiment (As of 03:20 p.m., Jan 14, 2021),

Short - 40.15%

Long - 59.85%

For information please refer to Vladimir Zernov.