Opinion on the pair GBP/USD. The British does not have a fuse

During today’s trades, the British managed to win back almost all Friday losses against the US dollar. On Friday, the decline in the GBP/USD pair was due to weak data on retail sales in the UK and the overall strengthening of the US dollar. For more information, see “The pound is under pressure. Data on retail sales in the UK. “

Today, in the absence of a significant news background and any catalysts, the pair GBP/USD growth is due to the general dynamics of the US currency, which is exerted by the suspension of the work of the US government.

Technical analysis: The GBP/USD pair is traded near the maximum mark of January at 1.3940, which has already been tested twice and on the third – the update of the maximum mark of the current year is possible.

Key recommendations: If the price of the instrument is able to gain a foothold above 1.3940, one should expect further growth of the pair to around 1.4000. In the event of a false breakdown of 1.3940, this would be a good signal for selling the pair with a target 1.3860. Purchases in case of correction should be considered from the level of 1.3826, which corresponds to the level of 23.6 Fibonacci on H1.

Fig. GBP/USD. Current price – $ 1.3925

Alexander Sivtsov