Current trend
Yesterday was not the best day for the British currency. The pair had failed to break down resistance level of 1.6500 and rolled back to Fibonacci line 23.6% (1.6425). However the price was not able to consolidate at this level either, falling down to the level of 1.6350 in the late afternoon. By evening the Pound managed to regain slightly and went up to the level of 1.6390, where it is trading at the moment. Today consumer price index of UK will become known. If this index falls below the forecast, the pair might drop to the level of 1.6300.
Support and resistance
Support levels are 1.6375, 1.6350 and 1.6315. The nearest resistance level is 1.6400, which will be followed by the key target of the bears – 1.6425.
Trading tips
It makes sense to place short positions if the price consolidates below the level of 1.6350. Pending buy orders can be placed above the level of 1.6400 with the target of 1.6470.
Ilya Lashenko
Analyst of LiteForex Group of Companies
