SALES SPEED UP IN GBPUSD
British Prime Minister Boris Johnson stated that the rate of spread of the vaccine is encouraging, and that the return to normal depends on the vaccination program going well. This week, the highest level since the beginning of the epidemic was recorded in the number of people who died in the UK due to Covid-19. The British Foreign Minister stated that after the increasing number of cases, there is a long way to go in removing the restrictions. It was pointed out by the Governor of the Bank of England that there was a significant improvement in the economy as vaccination progressed. The British Minister of Health stated that progress has been made towards the February vaccine targets and they believe that the vaccine supply will improve over time. While December inflation increased by 0.3 percent in the UK, this image indicated an increase of 0.6 percent annually. Following these developments, the parity, which spent the week with buyers above 1.37, gained momentum with the break of 1.37 on the last trading day of the week.
On the US side, Joe Biden was announced as the new President, while Speaker of the House of Representatives Nancy Pelosi said that the new fiscal stimulus package is planned to be put to the vote in early February. If we look at the macroeconomic data announced in the USA, unemployment wage applications in the USA recorded a moderate decline with 900K, while the Philadelphia Fed Manufacturing Index pointed to a significant increase with 26.5 in January.
In the technical view of the GBPUSD parity, we can see that retracements gain momentum with support levels at 1.3630 and 1.3540, depending on the continuation of sales below 1.37. However, in the recovery that may occur from 1.3650, we are following 1.37 resistance in the first place. Above this level, we are watching the continuation of the recovery within the frame of 1.3780 and 1.3855 resistance levels.