Upside hopes for the GBP?

14 January, 2021

The British monthly GDP is announced on Friday at 09:00 MT time. In December, Rishi Sunak, Chancellor of the Exchequer, said that the British economy hasn’t seen an economic crisis like the current one in the last 300 years. Brexit had its impact but has never been the main driver: fundamentals are what matters. And fundamentals are hardly positive for the UK at the moment, in most aspects of its economic well-being.

The labor market is slowly picking up, but the overall state of affairs is quite difficult. Ultimately, it is all reflected in the country’s output: if it is lower than expected, it may press hard on the GBP.

If the data is better-than-thought, the GBP will be boosted. Otherwise, it will fall.

  • GBP/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
  • XAU/USD: Gold is trading above the 23.6% retracement area. Bullish trend remains weak.

US Market View


US stocks are seen opening higher Tuesday, rebounding from the previous session’s losses with investors looking for additional fiscal stimulus amid continued political turmoil. The United States lost more than 22 000 lives to Covid-19 last week, a second straight weekly record. The overall death toll is now 375 000. The current surge, and the associated economic damage, prompted President-elect Joe Biden to promise further economic stimulus “in the trillions of dollars” late last week. More details are expected to follow in a formal announcement on Thursday, something that is supporting markets at their current elevated level.


USA Key Point

  • Gold gains 1% on the day as buyers keep a defense of key support level
  • German chancellor Merkel expects lockdown to last until early April
  • The GBP is the strongest and the USD is the weakest
  • European equities pare gains as sentiment stays rather mixed on the session

Source   Presented by FBS
GBPUSD eases below 33-month peak26 Jan, 2021  

GBPUSD is retreating somewhat after the pullback off the 33-month high of 1.3745 in the preceding week. Currently, the pair is flirting with the 20-day simple...

GBP/USD surrenders intraday gains25 Jan, 2021  

GBP/USD struggled to preserve early gains and retreated around 50 pips from tops. Concerns about the economic impact of COVID-19 held bulls from placing fresh bets...

GBPUSD retreats from a jump above 1.370015 Jan, 2021  

GBPUSD created a spike to the upside on Thursday, surpassing the 1.3700 round number and recording a fresh 33-month high before it returned lower...


GBPUSD retraction unable to tilt appreciation scale12 Jan, 2021  

GBPUSD continues to echo a positive tone despite recently retreating from a fresh 32-month high of 1.3703. The rising red Tenkan-sen line is suggesting...

The loss of the 1.3545 critical support line is a bearish sign11 Jan, 2021  

GBP/USD lost critical support at 1.3545 as the cable tumbled down due to Fed-related dollar strength and the UK's dire covid situation. Ramping up of Britain...

Brexit: Sterling & UK1004 Jan, 2021  

A Brexit deal materialized on Christmas Eve, and was ratified by the UK parliament and unanimously approved by all 27 EU ambassadors. The deal took effect...


GBP/USD set to finish tumultuous 2020 on the front foot around 1.36501 Jan, 2021  

GBP/USD is finishing the year on the front foot amid a weaker USD. Sterling traders continue to mull the themes of UK lockdowns, vaccination and continued Brexit...

GBP/USD needs to break above 1.3710 to extend the rally31 Dec, 2020  

The British pound is the strongest currency, with GBP/USD poised to close 2020 at its highest in over two years. The cable traded as high as 1.3685 as bulls...

GBPUSD favours upside, vicious appreciation boosts bias25 Dec, 2020  

GBPUSD recently logged nine consecutive green candles and is quickly approaching the 31 month high of 1.3624. The price found some footing just beneath...