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Old 22-01-2021, 14:16
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KostiaFM KostiaFM is offline
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Default Re: Daily Market Analysis by ForexMart

GBP/USD. January 22, 2021 Pound falls under pressure from economic publications

Yesterday the British pound fell to 1.3650, today the pair recovered to 1.3670.

Sterling looks pretty stable against the dollar, despite the local correction. The fact is that the currency finally got rid of the strong pressure from the Brexit risks and the confrontation between the politicians of the European Union and London.

At the same time, support for the currency today is also provided by successful vaccination in the UK against the background of a double lockdown, and perhaps the country's population will be able to return to their usual way of life in the second quarter.

Macroeconomic statistics are negative today for the pound: retail sales in December rose only 0.3%, worse than the forecast for growth by 1.2%. Composite PMI also fell short of the forecast: 40.6 points in January against expectations of 50.7 points. The business activity index in the manufacturing sector was 52.9 points (forecast - 57.3), and in the service sector 38.8 points (forecast - 49.9).

Thus, at the end of the week sterling came under pressure from economic indicators. The RSI indicator is targeting the support area, which signals further currency weakening.
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