Source: PaxForex Premium Analytics Portal, Technical Insight
Bank of England, Tenreyro: we are still discussing the appropriateness of negative rates:
Additional stimulus may be needed;
In that case, it will be important to have negative rates in the toolkit;
There is no clear evidence that negative rates will reduce bank profitability;
All other things being equal, loose monetary policy can help the economy recover faster;
Experiences in other countries point to the effectiveness of negative rates;
A new wave of disease could lead to significant job losses;
If vaccination in Britain goes quickly, slower vaccination of trading partners could adversely affect the economy;
QE does more to prevent a downturn than to stimulate growth.
GBP/USD, 30 min
Pivot: 1.3542
Analysis:
Provided that the currency pair is traded above 1.3490, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 1.3542
- Take Profit 1: 1.3570
- Take Profit 2: 1.3600
Alternative scenario:
In case of breakdown of the level 1.3490, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 1.3490
- Take Profit 1: 1.3450
- Take Profit 2: 1.3425
Comment:
RSI shows ascending momentum during the day.
Key levels:
| Resistance | Support |
| 1.3635 | 1.3490 |
| 1.3600 | 1.3450 |
| 1.3570 | 1.3425 |
GBP/USD, D1
Pivot: 1.3536
Analysis:
While the price is above 1.3350, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1.3536
- Take Profit 1: 1.3750
- Take Profit 2: 1.4000
Alternative scenario:
If the level 1.3350 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1.3350
- Take Profit 1: 1.3130
- Take Profit 2: 1.2910
Comment:
RSI indicates that an uptrend continues in the medium term.
Key levels:
| Resistance | Support |
| 1.4280 | 1.3350 |
| 1.4000 | 1.3130 |
| 1.3750 | 1.2910 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD – sell below 1.2175 with 1.2100 and 1.2080 targets as Take Profit. Alternative scenario - if the level 1.2175 is broken-out, buy with the TP 1.2195 and 1.2225.
USD/CAD - short positions below 1.2795 with 1.2710 and 1.2680 targets as Take Profit. Alternative scenario - if the level of 1.2795 is broken-out, buy with the targets 1.2835 and 1.2860 as Take Profit.
NZD/USD – buy above 0.7141 with 0.7199 and 0.7210 as Take Profit targets. Alternative scenario - if the level of 0.7141 is broken-down, you should consider selling with the targets 0.7121 and 0.7110 as Take Profit.
