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Novox GBPUSD Index Daily Analysis


Fundamental analysis

The pound and the United States pulled up to a three-year high of $1.3718 during the European session yesterday, but then gave up some of the gains and rose only 0.18% in late trading to 1.3654. High risk appetite in the global market, coupled with optimism related to the UK, boosted the pound. Recent data shows that the speed and coverage of universal vaccination in the United Kingdom is at the leading level among major developed economies, faster than the European Union countries that have been slow in this regard. Investors who are concerned about the economic outlook have partially changed their views. This also means that the Bank of England officials will continue the optimistic language of last week in the future, further downplaying the possibility of the need to implement a negative interest rate policy. This also promoted the strengthening of the exchange rate before the Bank of England Governor Bailey spoke in the day. Investors need to pay attention to the further development of the US dollar index later in the day. If the US government strengthens its easing prospects, the pound will rise further.


Technical analysis

The pound-US-Japan line closed with the long-term positive line, and the overall still operated within the rising range. On the technical indicators, on the daily chart, MACD is dead cross but the green momentum is weak. KDJ is golden cross. The RSI indicator runs on the 50 area close to the 50 area. In the four-hour chart, the MACD indicator is golden cross, but the red momentum weakened, and KDJ deaad cross went down. The GBP and the USD have the risk of rising and falling in the short term (there will be prompts in the intraday for long points).


Operational recommendations:
The pound-US-Japanese line closed the long-headed positive line, and once again met resistance and fell back at the 1.37 strong pressure mark. It is still running on the upward trend line. Today, it is expected to fall below the first support at the bottom again, and drop to the second support level to fall back as a whole. Today's operation is high-altitude first. It is steadily recommended to wait for the pound and the United States to rebound to the area above 1.367 today to sell short. There will be prompts for long positions, stop loss 600 points, and stop profit are not recommended.
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