GBPUSD British currency is trying to grow

GBPUSD British currency is trying to grow. GBP/USD is developing the upward trading dynamics against the background of the depreciation of the US dollar and is currently at around 1.3546.

The pound quotes reacted with growth to the statements of British Prime Minister Boris Johnson that the high rates of revaccination of the population make it possible to avoid severe restrictive measures and the introduction of a lockdown is not planned in the near future, despite the fact that the UK, like many other European states, is faced with another wave of coronavirus caused by the Omicron mutation. According to Johnson, an increase in the incidence will be observed in the coming weeks, and the load on the national health system will increase significantly, but the country, in his opinion, will be able to overcome the fourth wave of the epidemic without resorting to quarantine.

The authorities’ refusal to tighten sanitary standards has inspired investors, who hope that the epidemiological situation will not affect the pace of economic recovery. The pound was also supported by the December data on business activity indices: in the services sector, the indicator was 53.6 points, which is higher than the 53.2 points predicted by analysts, as well as the composite PMI index, which showed absolutely identical values.

The positions of the US dollar slightly corrected after the indicator of Initial Jobless Claims again exceeded the threshold of 200K, amounting to 207K against the background of 197K expected by analysts. The number of Continuing Jobless Claims also increased to 1.754M, higher than the market’s preliminary estimates of 1.688M. The final data on Nonfarm Payrolls are due today and if the number of jobs falls below the forecast, the US dollar may continue the downtrend.

Support and resistance

GBP/USD is trading within the global downtrend channel, having approached the resistance line. Technical indicators are holding a signal to open long positions: the fast EMAs of the Alligator indicator is above the signal line, and the histogram of the AO oscillator is trading in the buy zone, forming ascending bars.

Support levels: 1.3487, 1.3200.

Resistance levels: 1.3610, 1.3838.

GBPUSD British currency is trying to grow

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