After a corrective pullback, which took place at the auction on December 28, the pound/dollar currency pair returned to an upward trend and demonstrates growth for the second day in a row. Before proceeding to the consideration of the GBP/USD price charts, let's discuss a little bit about the external background and those events that may affect the course of trading in the pound sterling. As you know, today the House of Commons of the British Parliament will begin the process of ratifying the trade agreement that Boris Johnson concluded with his European opponents. As already suggested in today's article on EUR/USD, this document will most likely not be adopted easily and simply, but still, to a greater extent, you can count on a positive result, since a hard Brexit will hit the British economy hard, which, therefore, is far from in the best situation.
Now it is worth touching on the topical issue of the COVID-19 pandemic. As you know, the UK has become the most affected country from the coronavirus after Italy. In total, 71,000 deaths from the COVID-19 epidemic were recorded, and over the past day, the number of infected people in the United Kingdom amounted to 53,000. The medical system in the UK is running at its limit, hospitals are overloaded, and there are not always enough necessary medicines. According to experts, the British health care system is quite expensive and inefficient. This problem did not appear yesterday and radical reforms are needed here. However, the UK government first needs to finalize the divorce with the European Union, and with the least losses for the country. Looking at today's economic calendar, you can pay attention to the data from the United States of America, which will begin to arrive starting from 13:30 UTC.
Daily
As already noted at the beginning of the article, yesterday and today(at the time of writing), the pound/dollar currency pair is showing growth and is now trading near 1.3578. At this point in time, there is a breakdown of the resistance of sellers at 1.3570, or rather, attempts to overcome this strong technical level. However, there is an equally strong technical zone located nearby (1.3600-1.3620), overcoming which will send the pair to the area of 1.3700. At this stage of time, the key resistance of sellers is in the area of 1.3618-1.3623, where the maximum trading values were shown on December 17 and 24, respectively.
Trading recommendations for the GBP/USD pair mostly involve buying sterling, but the vote in the British parliament can lead to increased volatility, so you need to be careful and not rush to enter the market. In my opinion, the best option for opening long positions on the pound is to look for after a short-term decline of the pair in the price area of 1.3500-1.3480. However, a short-term drop may be more significant and reach the price zone of 1.3450-1.3430. In the event of negative news from the UK on the ratification of the agreement with the EU and the appearance of today's reversal model of candle analysis, it will be possible to think about selling the pair. But, if there is such an option, we will consider it in tomorrow's article.
Good luck!
