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 became more stable
Information is not investment advice
The British pound has found some grounds versus the greenback during the last two weeks. Firstly it formed a “harami” pattern near the support line on W1, then the pattern was confirmed by another bullish weekly candlestick. Yesterday GBP/USD found the support of the weekly pivot point at 1.2213. As long as the pair remains above this point, it has a chance to test higher levels. The declining 200-period MA on H4 at 1.2270 looks like an obstacle for buyers, but a break above this level will open the way up to 1.2335 (23.6% Fibo of the March-August decline) and 1.2362 (first weekly pivot resistance). On the other hand, if the pair turns down from 1.2270, it will mean a short-term top. The decline below 1.2210 will make the pair slide to the support at 1.2170.
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.
U.S. stocks are set to reopen higher after the Martin Luther King Day holiday on Monday, with Yellen’s remarks a welcome reminder of the momentum behind economic stimulus measures.
Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!
Asian equity markets mostly rallied with risk appetite spurred as trade picked up from Monday’s holiday.