RISES IN GBPUSD SLOWED DOWN
While Brexit optimism in the parity, which was clinging around the level of 1.36 throughout the week, limited the decreases, while the tension created by the announcement of a national quarantine on the parity was closely felt. While no significant development was followed on the UK side, manufacturing PMI in the country increased above expectations with 57.5. Service PMI continues to maintain its outlook at 49.4, below the base level of 50.0. The announcement by British Prime Minister Boris Johnson that the extraordinary measures that started with the closure of schools will be made with a gradual normalization that will not be easily lifted, triggered some concerns about the country's economy. On the other hand, the Covid-19 vaccine applications developed by the University of Oxford in cooperation with the pharmaceutical company AstraZeneca, which was approved for widespread use in the UK on December 30, 2020, continue to continue.
On the US side, US President Joe Biden was announced as the 45th President of the US in the joint Senate-Congress session, while more than 70 Democratic representatives in the House of Representatives demanded the dismissal of President Trump. Following these developments, while the tension increased in the political agenda in the USA, weekly unemployment pension applications in the USA were realized in line with the expectations. However, the ISM Service PMI figure exceeded expectations in December, the biggest increase in the last 3 months. With the short-term recovery of the dollar, we see that the GBPUSD parity rises slowed down a little.
Looking at the technical outlook of the GBPUSD parity, the parity, which continued its hold above 1.3540 level, recovered slightly on the last trading day of the week. Especially with the break of 1.3630 resistance in the pair, the gains could gain momentum around the 1.3740 and 1.3855 resistance levels. However, in a possible downward pressure, it is worth paying attention to the support levels of 1.3440 and 1.3358 in closings below 1.3540 level.