Illustration photo of GBP/USD daily chart from Tradingview
GBP/USD is currently trading around 1.3590, which is slightly below yesterday’s high of 1.3665. The recently announced lockdown in the UK pressures the GBP/USD pair.
First, the run-off elections in Georgia, making Chuck Schumer the next Senate majority leader as Jon Ossof managed to defeat David Perdue. This means more stimulus and higher tax and regulation in the near term. In this case, the GBP/USD will gain positive momentum.
Second, the monthly Automated Data Processing (ADP) report was a mess. American economy lost more than 123,000 private-sector jobs based on the data given. This will provide more incentives for Congress to approve stimulus. Besides that, the Senate confirmed Biden as the next president.
As for today, there isn't any market-moving economic data release from the UK. Investors will be focus on the initial jobless claims from the U.S. which will come a day ahead of the official nonfarm payroll data release.
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 1.3540 if manage to test the support level at 1.3575.
Besides that, on the upside, he pointed out that GBP/USD will move towards the resistance level at 1.3665 if manage to get below the level at 1.3625. GBP/USD will then move to a recent high at 1.3710 if it gets above the 1.3625 level.
FOLLOWME GBP/USD Overall Sentiment (As of 03:20 p.m., Jan 07, 2021),
Short - 54.21%
Long - 45.79%
For information please refer to Vladimir Zernov.