Two trades to watch: GBP/USD ahead of final Georgia result, Greggs slows sales decline
Fiona Cincotta January 6, 2021 7:03 PM
GBP/USD flirts with 1.3650 as the Democrats lead the Georgia runoffs & ahead of UK service sector PMIs Greggs looks to test key 1900 resistance after the rate of sales decline eases.
GBP/USD is flirting with $1.3650. It trades above its 50 & 20 sma bouncing off the latter when it eased back earlier in the session. The RSI also supports the bullish momentum as it sits above 50 but well below over bought territory suggesting that more upside could be on the cards.
On the flip side a move below the 20 sma at 1.3620 could open the door to 50 sma at 1.3560 and 1.3535 January’s low.
Greggs jumps 4%, can it rise higher?The bakery chain expects loss before tax for the year ended January 2nd to be up to £15 million, down from a record £108 million profit recorded a year earlier after Q4 sales plummeted 15% to £293 million.
Greggs has jumped over 4% higher on the open taking it over the upper band of a horizontal channel that it has traded in since early November.
Greggs trades above its 20 & 50 day sma and above its ascending trendline dating back to early November signaling an established bullish trend.
On the flip side support can be seen at 1800 horizontal support prior to 1750 20 sma and 1720 ascending trend line. A break below 50 sma 1650 is needed to for a deeper selloff.
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