Yesterday afternoon quotes of the currency pair GBP/USD fell to 1.6070 in respond to the publication of the minutes of the US Fed’s last meeting. Members of the Open Market Committee confirmed recovery of the American economy and considered a possibility to curtail bond purchase program in the near future; however they decided to postpone this measure until further improvements in the labour market.
Today statistics on net borrowings in the public sector of Great Britain will become known. According to the forecast budget deficit will reduce reaching 4.8 billion pounds, which will support the British currency.
Support and resistance
At the moment the pair is experiencing correction. During the day the price is likely to reach the level of 1.6115 (medium line of “Bollinger bands” indicator. If this level is broken down the pair may go up to 1.6150 (top moving average of “Bollinger bands”). On the four-hour chart technical indicators give mixed signals. MACD histogram is in the positive zone; its volumes are decreasing. Stochastic lines are in the oversold zone shifting to the upward movement.
In the current conditions it makes sense to open long positions with the target of 1.6115. Pending orders to buy can be placed at the same level with profit taking near 16150.
Analyst of LiteForex Group of Companies