GBP/USD spinning 100-pips from high to low, Trump's inauguration eyed
|Currently, GBP/USD is trading at 1.2339, down -0.02% on the day, having posted a daily high at 1.2372 and low at 1.2261 ahead of Trump's inauguration speech that may increase volatility during NA trading session. Furthermore, the GBP/USD pair has been spinning over the last two consecutive days close to 100-pips from high to low where 1.2260-50 horizontal support zone created an unbreakable level in the near-term.
To note, historical data indicates that the highest performance for the British pound clocked at +3.01% (Jan.17), and its lowest at -1.19% (Jan.18) during the first 4-weeks in 2017.
Meanwhile, BBC reports, "Chancellor Philip Hammond has acknowledged that Brexit uncertainty may cause firms to delay investment. Speaking at Davos, he said some firms were "quite understandably... waiting for the fog of Brexit to clear". But Mr Hammond said for many foreign firms the UK had become a "buying opportunity", partly due to the fall in the pound since the referendum. The chancellor added that the UK economy had been resilient in 2016, "confounding many sceptics"."
Trump's A-Team
Barbara Rockefeller, President at Rockefeller Treasury Services, notes that as for any effect from Trump having said the dollar is too strong (when that is the thrust of his policy proposals), Trump's nominee for TreasSec Mnuchin told the vetting committee that what Trump meant was not a long-term policy endorsement. In other words, Trump does want a strong dollar, just not this strong, this fast. Or at least that's one obvious way to interpret Mnuchin. We say policy guidance from a second uninformed jackass has no more value than it had from the first one, president or not. No one in government authority can "manage" the dollar. Mnuchin is a hedge fund guy who ripped off mortgageholders in California and has $100 million stashed offshore that he forgot to put on his disclosure form. How do you forget $100 million?
Ichimoku Cloud Analysis: GBP/USD
She further writes, "Most of Trump's cabinet choices are ethically challenged and nearly all of them are screamingly obviously unfit for the job. The education secretary doesn't believe in public schools. The environmental protection agency guy thinks it's bad to interfere with polluters. The housing guy said, more than once, he knows nothing about housing (but he's black, so that's okay). The energy secretary pick wanted to eliminate the energy department when he was running for president and didn't know "energy" encompasses nuclear. The only one you can't point to as a joke is Tillerson at State. This is a reprise of the Bush Two strategy of proving that government is always bad by literally making it bad."
Technical levels to watch
In terms of technical levels, upside barriers aligned at 1.2411 (50-DMA) and above that at 1.2562 (100-DMA). While supports are aligned at 1.2260-50 (horizontal support zone) and below that at 1.2180-60 (another horizontal support).
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