Hi guys!
Hope everyone had a good weekend and is ready like we are for a big week on the charts!
GU is catching our attention, fundamentals are having a major impact on the strength of GBP and it's issuing buying rallies.
We have seen the ascending price structure continue on the back of a strong push from 2020.
Generally strong support and resistance ceiling formed at 1.37590. We haven't seen a higher price since 2018 of 1.43770.
We saw price touch a low of 1.34507 11/01 alongside Decembers dip but overall I am sitting on my long positions and holding.
We are seeing further fundamentals to show strength in numbers and I don't see this changing. Vaccine, Brexit, Bonds being secured, each time an announcement arrives, we see sterling fly. All of these announcements were followed by additional fiscal stimulus by our GOVT. In the most recent, the treasury didn't make a move until the furlough scheme extension to APRIL was announced. This basically puts more money in the pockets of those unable to work due to this awful pandemic. Which then results in a stronger economy, more GBP circulating, and a certainly more robust value for the GBP. One thing I have noticed, the US and likewise Europe are hesitating about adding fiscal stimulus to their economy which is why the GBP is outperforming them. I think this leaves further room for GBP to rise.
One thing that seriously caught my eye was BOE issuing 150 billion of bond purchasing 04/02, look at the sharp upturn on 4th FEB...
We will report back in a few days.
We will be uploading our full video tutorial at some point this evening.
Enjoy your Sunday people!!
JWTC
Hope everyone had a good weekend and is ready like we are for a big week on the charts!
GU is catching our attention, fundamentals are having a major impact on the strength of GBP and it's issuing buying rallies.
We have seen the ascending price structure continue on the back of a strong push from 2020.
Generally strong support and resistance ceiling formed at 1.37590. We haven't seen a higher price since 2018 of 1.43770.
We saw price touch a low of 1.34507 11/01 alongside Decembers dip but overall I am sitting on my long positions and holding.
We are seeing further fundamentals to show strength in numbers and I don't see this changing. Vaccine, Brexit, Bonds being secured, each time an announcement arrives, we see sterling fly. All of these announcements were followed by additional fiscal stimulus by our GOVT. In the most recent, the treasury didn't make a move until the furlough scheme extension to APRIL was announced. This basically puts more money in the pockets of those unable to work due to this awful pandemic. Which then results in a stronger economy, more GBP circulating, and a certainly more robust value for the GBP. One thing I have noticed, the US and likewise Europe are hesitating about adding fiscal stimulus to their economy which is why the GBP is outperforming them. I think this leaves further room for GBP to rise.
One thing that seriously caught my eye was BOE issuing 150 billion of bond purchasing 04/02, look at the sharp upturn on 4th FEB...
We will report back in a few days.
We will be uploading our full video tutorial at some point this evening.
Enjoy your Sunday people!!
JWTC
Where too next for GU?
Our next piece of analysis structure will be uploaded later tonight.
JWTC