(DAILY NOTION) GBP/USD Pulled Back After Failed to Settle Above Resistance Level at 1.3710, Next Mover: UK GDP Data

Illustration photo of GBP/USD daily chart from Tradingview

GBP/USD is currently trading around 1.3670, failed to settle above the resistance at 1.3710.

The pounds sterling has been rallying in recent days after Andrew Bailey warned about the complexity of negative interest rates. He mentioned the difficulties that banks, which form a vital part of the economy, will face. 

As for today, the GBP/USD will react to the GDP data that will be released by the Office of National Statistics (ONS). A survey by Reuters showed that the country will take at least two years for the economy to go back to pre-covid levels. Investors will also look at the industrial production and manufacturing production reports for the November data. Industrial production is expected to grow by 0.5% m-o-m while manufacturing production is expected to increase by 0.9%.

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 1.3625 if manage to test and declines below the support level at 1.3665. A successful test at the level of 1.3625 will move GBP/USD to the next support level at 1.3575.

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 1.3755. If successfully test the resistance level at 1.3755, GBP/USD will move towards the resistance level at 1.3785.

FOLLOWME GBP/USD Overall Sentiment (As of 04:00 p.m., Jan 15, 2021),

Short - 39.44%

Long - 60.56%

For information please refer to Vladimir Zernov.