Welcome trading legends,
In this post, we’ll be trading the EUR/GBP asset using the signals provided by the Tools Trades website and the IQ Option broker. Be sure to stick to the end of the video as I’ll be sharing a special promo code with you.
Allow me to explain why I’m trading this particular asset.
GBP/USD is trading below 1.37, riding on an extension of late 2020's dollar decline. The pound sterling is shrugging off concerns of Brexit jitters and the increase in COVID-19 cases in the UK. PM Johnson is pressured to enact a new nationwide lockdown.
The Relative Strength Index on the four-hour chart is just below 70 (near overbought conditions). Upside momentum remains significant, yet off the highs. The pair remains above a 2-week old ascending trend-line, a bullish sign. All in all, cable has limited room to rise, the resistance is at the daily high of 1.3700 critical round figure mark, which is also the highest since 2018. Next resistance awaits at 1.3730 and 1.3810, levels last seen nearly three years ago.
On the flip side, Support awaits at 1.3600, a swing high point around Christmas, and would probably trigger a more extensive correction and bring the key support at 1.3600 into focus, followed by 1.3525 that capped the pair last week. Further down south, 1.34 await GBP/USD.
With Brexit finally done, attention will turn to the spread of the coronavirus in the UK and Europe, whilst governments look to increase their vaccination efforts. The UK is now moving to administer the first shots of its vaccine from AstraZeneca and Oxford today, after the jab achieved approval last week.
Much of the UK is stuck in Tier 4 lockdowns but the government is warning of further restrictions as cases reach almost 50k per day. The Prime Minister is also under pressure to keep the country’s schools closed. Europe has also seen a rise of cases and a spread of the newer strain of the virus and this will drive the outlook for GBEUR in early-2021.
Scotland is now expected to move to another national lockdown, which is likely to last until spring, while restrictions are also being imposed further in European countries. The excitement that surrounded the emergence of the vaccine may not lead to the first half economic bounce that some had hoped.
As you can see the signals from the Tools Trades website have worked!
The promo code #SHIVINVEST will give you more trading signals if you use them on the Tools Trades website.
Be sure to watch my other videos on the channel and read the blog page so you learn more. If you want more videos like this be sure to like and subscribe. As we march into the New Year I wish all of you a great trading year ahead with many profitable signals.
May the Forex be with you.
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