GBP / USD Review of April 26, 2021
On Monday, GBP / USD is demonstrating flat dynamics, trading near the 1.3900 level.
Sterling supports the positive macroeconomic statistics in the UK. In March, the benchmark retail sales index added 4.9%. On an annualized basis, an increase of 7.9%. Retail sales in March increased by 5.4% against the forecast of 1.5%. The strengthening of the sterling is held back by the report of the Office for National Statistics of the size of the British government debt, which currently stands at £ 2.14 trillion. or 14.5% of GDP, which is a record since 1946.
At the same time, the dollar came under pressure after Joe Biden’s proposal to significantly raise the debt burden for the rich American. According to the calculations of the White House, this will attract an additional $ 2 trillion, which will be spent on the reconstruction of infrastructure under the program to support the economy.
GBP / USD is trading within the descending channel. The Alligator’s fan has opened correctly in the buy direction, the awesome oscillator indicator is above the zero level.
If the price consolidates above the level of 1.3990, it will be considered that the pair has returned to the uptrend and open long positions with a take profit of 1.4231. Placing a stop loss at 1.3900.
If the downward dynamics continues, it is recommended to wait for consolidation below 1.3788 and then open sells with a take profit of 1.3666. Set your stop loss at 1.3850.