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Bitcoin is over $30k, Happy New Year!

EUR/GBP – Weekly Candlesticks
Source: GKFX / MT4 (January 3, 2021)

After two bearish rejection candles, EUR/GBP is eyeing a test of interim support at 0.866 before a possible breakdown towards the bottom of its long-term trading range
 

TAKEAWAYS


•    Bitcoin reaches 33,000 in 10%+ weekend rally
•    GBP/USD over 1.36 as British parliament approves Brexit trade deal
•    China and EU agree trade deal
•    US stocks reach record highs in last day of 2020
•    Congress to certify Biden as President on Wednesday (Jan 6) 
•    DAY AHEAD: Manufacturing PMIs, OPEC Meeting
 

GURU WISDOM


“Ambition beats genius 99% of the time.” – Jay Leno
 

MARKETS


*Daily closing price
↗ EUR/USD    1.2236        (+0.84%)
↘ GBP/USD    1.3669        (-0.01%)
↘ USD/JPY    103.21        (-0.02%)
↗ S&P 500    3756.75    (+0.64%)
↗ Hang Seng    27,231        (+0.31%)
↗ Gold        1901.60    (+0.34%)
↗ Oil (Brent)    51.80        (+0.90%)
↗ Bitcoin    33,729        (+9.37%)
 

NEWS

 

Bitcoin > 30k


By late Sunday Bitcoin had reached over $33,000 – rallying another 10% from having topped $30,000 on Saturday. We have talked about the fundamental drivers of mainstream adoption and large investor interest before. At this stage it is almost entirely momentum and FOMO (fear of missing out) that is the biggest short term driver for the BTC price. There is some risk of selling at the 30,000 round number but with widespread calls for $100,000- many might be willing to hold on, despite a huge 300% price gain across 2020. 
 

Brexit deal


The market was ultimately proven correct by betting that a trade deal between the EU and UK would ultimately be done. The pound had already broken key resistance at 1.34/35 before the deal was done and pushed over 1.36 when it finally was agreed. If Brexit optimism holds, GBP/USD has more room to the upside to recover 1.40 and levels not seen since before the referendum.
 

New Year


2020 was a very difficult year for the human race and like everybody; we hope the New Year brings health and wealth to as many people as possible! BUT we should also consider that from a forex and cfd trading perspective - 2020 was a year full of huge opportunity! Uncertainty from long term investors means more frequent and bigger price moves that provide short term traders more opportunities for profit. May the opportunities continue into 2021!
 

DAY AHEAD 


TIME (GMT)        EVENT                    CONSENSUS    PREVIOUS
01:45        CNY    Caixin Manufacturing PMI(Dec)         54.9        54.9
09:00        EUR    Markit Manufacturing PMI(Dec)     55.5        55.5    
09:30        GBP    Markit Manufacturing PMI(Dec)     57.3        57.3
10:00        USD    OPEC Meeting 
14:45        USD    Markit Manufacturing PMI(Dec)             56.5