Stocks, oil, and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.
GBP/USD: a short-term uptrend
Information is not investment advice
GBP/USD continued its recovery yesterday. The pair rose to the 50-week MA at 1.3150. It’s quite natural to assume that this line will act as resistance. The next obstacle on the upside lies at 1.32 (100-week MA, January highs).
On H4, the pair formed a doji with a long upper wick — a negative sign. There’s also a negative divergence with Awesome Oscillator. All in all, there’s a significant probability that the pound will correct down. Notice though that the proposed trades are counter-trend, so make sure that you manage the risks properly. The levels around 1.3050 might become attractive for buying.
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.
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US President-elect Joe Biden proposed a $1.9 trillion stimulus plan to jump-start the world's largest economy and accelerate its response to COVID-19