Illustration photo of GBP/USD daily chart from Tradingview
GBP/USD is currently trading around 1.3600. The pair traveled from a low of 1.3553 to a New York session high of 1.3641 as the weakness in the U.S. dollar.
The market still remains cautious, leave the U.S. dollar underperformed and the U.S. run-off election might putting pressure on the dollar. On the other hand, the British pound remains optimistic as the new lockdown deflates optimism from a post-Brexit trade deal with the European Union.
As for today, investors will be focus on the run-off elections in Georgia. It looks like the Democrats have the high chances and take control of the Senate. As Democrats favor additional stimulus, U.S. dollar may face bearish pressure.
It is possible to gain additional momentum in the short-term in case the right catalysts emerge as the RSI indicator recently declines back to the moderate territory. As reported by Vladimir Zernov, He pointed out that GBP/USD will move towards the resistance level at 1.3665 if settle above 1.3641. A settle above the level at 1.3665 will move the GBP/USD to the next resistance level at 1.3710.
On the support side, He pointed out that if GBP/USD declines below the level at 1.3575, it will move towards the next support level at 1.3540. GBP/USD will then move to the next support level at 1.3500 if successfully test on the 1.3540 area.
FOLLOWME GBP/USD Overall Sentiment (As of 03:40 p.m., Jan 06, 2021),
Short - 46.40%
Long - 53.60%
For information please refer to Vladimir Zernov.