- Employment Report: Tuesday, 7:00. Jobless claims dropped to 7.0 thousand in December, down from 64.3 thousand beforehand. We now await the January data. Wage growth is expected to accelerate for a sixth successive month, with a forecast of 4.1%, up from 3.6%. The unemployment rate has been creeping higher, and is expected to edge up to 5.1%, up from 5.0%.
- CBI Realized Sales: Tuesday, 11:01. Sales volume plunged to -50 in January, its lowest level since May. Another soft reading is expected for February, with a forecast of -39.
GBP/USD Technical analysis
Technical lines from top to bottom:
We start with a monthly resistance line of 1.4406.
1.4104 has held since April 2018.
1.3985 is next.
1.3917 was breached in resistance for the first time since April 2018.
1.3808 is the first support level.
1.3687 (mentioned last week) is the final support level for now.
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I am bullish on GBP/USD
The UK vaccine rollout is gathering steam and the pound is showing positive momentum and breached the 1.40 level last week. In the US, the Biden stimulus package, which will be released shortly, will likely weigh on the US dollar.
Further reading:
- EUR/USD forecast – for everything related to the euro
- USD/JPY forecast – projections for dollar/yen
- AUD/USD forecast – predictions for the Aussie dollar
- USD/CAD forecast – Canadian dollar analysis
- Forex weekly forecast – Outlook for the major events of the week
Safe trading!