Forex Daily Analysis : February 26, 2021

The daily forex analysis on February 26, 2021 will discuss the movement of GBPUSD which weakened in Thursday's trading, the weakening of the Pound Sterling was due to the strengthening of the US Dollar. In addition, the weakening of the Pound Sterling is also due to profit-taking actions carried out by market participants. Is it possible that the Pound Sterling has corrected after the continuous strengthening that has occurred for approximately the last 4 months?. It may happen, because the GBPUSD movement had risen and strengthened and has entered the medium/long-term resistance zone in the range of 1,437xx. The greenback managed to hold off its fall in the market last Thursday from a 3-year low. The strengthening of the US dollar occurred due to an increase in US bond yields for long-term tenors. These American government bonds, especially the US Treasury Department, have now become the choice and focus of investors globally. As we all know, the increase in bonds began to occur after the US government's fiscal stimulus plan. On the other hand, the US central bank is also in the midst of its monetary policy that is low from the interest rate that is maintained. The rapid distribution and vaccination carried out by all countries in the world globally has also encouraged what is later known as "reflation trading". However, in the last few days, the increase in bond yields has been adjusted to the inflation rate which is targeted to rise rapidly. This condition has given a positive signal to market participants, that it is possible and very likely that the US central bank needs to reduce the amount of stimulus amid Powell's dovish view.

Forex Daily Analysis Predictions

Today's FOREX prediction on the GBPUSD pair is expected to weaken/fall and the recommended OP (Open Position) is SELL at the level of 1.39450. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points.
This the daily analysis of forex on February 26, 2021. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.