Important events today:

12:30 UTC – US: Retail Volume Change.

The decline of quotations in the area of the nearest support levels is advisable to use for opening Buy positions for two reasons. Firstly, it is possible to expect the growth of the pound quotes against the background of the positive dynamics of the British government debt market, where the demand for the United Kingdom government bonds is still high. Banks and pension funds are again showing high demand for these securities.

Secondly, the uptrend in the oil market will provide additional support to the pound, as the assets are correlated with each other. The OPEC oil cartel is expecting China’s demand for oil to rise on the back of the Communist Party’s rejection of its zero tolerance policy on coronavirus. Since OPEC+ countries will not increase production until March 1, the global oil market will again face a supply shortage in January and February, which is favorable for oil prices growth.

Recommendations: Buy 1.2250/1.2225 and TP 1.2320.