GBPUSD weekly analysis from January 20 to January 24, 2020

The basic elements

GBPUSD opened this week with a gap gap, breaking below 1.30 for the first time since the January bull run from 1.2954.

Currently, GBP is trading in the 1.30 zone, after going from 1.3005 to 1.2989. The Pound is showing that it is under some downward pressure.

Brexit is the main catalyst leading to years of economic stress for the UK. In recent weeks, the focus of investors on the Bank of England has also begun to rub salt into the wound. Poor retail sales data was released on Friday as putting BOE on the same path of having to cut interest rates this month, and possibly again in May. These fundamentals may cause GBPUSD to depreciate further.

Technical analysis

In terms of technical analysis, the currency pair is fluctuating in the Flipzone and supporting at the zone of 1.295-1.30. In addition, the price has not broken the rising trendline from 1.2768 to 1.2908. Price needs to break out of this bearish trend and break through 1,295 to confirm the downtrend. However, the large trendline rising from 1.1957 to 1.2203 is also a strong support area. Once the trend line is broken, the GBPUSD downward trend can be strongly triggered, aiming for the target to 1.241.

If the Flipzone, Support, and the psychological zone are 1.30, the large possibility of GBPUSD will recover their momentum. The nearest price hike target is 1.3336.

REFERENCE STRATEGIES

Buy 1,295

Stop loss 1,288

Take profits 1.33

Recommendation: This is just a Trading Idea. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.

Author: Nguyen Chi Thanh