January turned out to be a good month for this currency pair. There has been a strong upward momentum in favor of the pound for 13 trading days in a row. Will 2024 be the best year for this currency pair? How advisable is it to invest the pound this year?
This week the pound strengthened thanks to good macroeconomic reports. In particular, investors appreciated good unemployment reports, higher than expected inflation and positive dynamics in GDP. This makes it more likely that the Bank of England will revise its policy rate this year.
Next week the focus will be on the publication of business activity indices in the UK. Volatility will remain at an average level. On the chart we can see that the trend is still downward and it is quite possible that the January rally will just be a price correction for the pound. So far, everything fits perfectly into the downward trend: the support and resistance lines have not shifted even a millimeter. One way or another, the upward momentum is not endless and soon we will again see the resumption of the downward trend, especially since the world has all the prerequisites for the resumption of increased demand for safe assets. The Stochastic oscillator signals an overbought zone and confirms the correctness of our plans to open the deals to SELL in the short term.
