As we know, the UK is leading in the number of citizens vaccinated against the covid-19 virus. With most restrictions lifted today, there was increased traffic in shops and services compared to last Monday.
- retail sales up 218% week/week
- quarterly results may surprise positively
- a bullish engulfing on the daily chart
On an optimistic note, the UK saw a 218% week-on-week increase in retail sales across all locations, indicating that people are ready to return to normality.
This could provide a strong boost to economic performance for April and Q2, especially if the demand that has been held back so far translates into consumer activity this quarter.
If the threat of the virus continues to diminish and the introduction of vaccines proceeds as planned, the summer in the UK promises to be a really good one, which could undoubtedly have a positive impact on the Pound exchange rate.
So let’s take a look at the charts and see what the technical analysis can predict for us.
On the daily chart a bullish engulfing pattern appeared. If there is an upward breakout from the formation and the MACD establishes a minimum and begins to grow, it will be a strong signal for growth.
Looking at the H4 chart – here we can initially assess the scope of possible increases. An upward divergence continues. The supply zone located above 1.3890 may be the buyers’ target.
However, if the breakout from the bull market will take place at the bottom, the price may fall to 1.3610. The best confirmation of the upward scenario will be the “green” MACD after the closing of tomorrow’s daily candle.
I recommend the description of the strategy used for this analysis:
ongoing analysis https://t.me/TradewithDargo
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