GBPUSD the US dollar went down

GBPUSD the US dollar went down. The GBP/USD pair moves within an uptrend around 1.3588 amid a statement by British Prime Minister Boris Johnson about a possible reduction in the quarantine period from seven to five days.

According to the official, the UK showed success in the fight against the Omicron strain, but the hospitalization rate is still unacceptably growing. The government announced that people could come out of quarantine three days earlier if they test negative for coronavirus twice. The reluctance of the authorities to introduce a new lockdown and tighten the existing quarantine measures instills optimism in investors. Macroeconomic statistics for December were also positive. Following the manufacturing sector, Construction PMI was also better than expected, reaching 54.3 points against the expected 54.0 points. British Retail Consortium (BRC) retail sales rose by 0.6% YoY with an expected 0.3% growth.

USD Index began to decline slightly after staying above 96.000 for the holiday weekend and is now at 95.800. Investors react to the recent poor labor market data, assessing the prospects for a change in the course of the US Federal Reserve’s monetary policy in early spring. This week, consumer prices data will be released, and inflation will intensify. According to analysts’ forecasts, it may exceed 7% YoY, which has not happened for more than forty years.

Support and resistance

The asset moves within the global downtrend channel, preparing to overcome the resistance line. Technical indicators keep a global buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram forms upward bars in the buy zone.

Resistance levels: 1.3666, 1.3835.

Support levels: 1.3496, 1.3171.

GBPUSD the US dollar went down

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