Trading news

GBP/USD: Analysis and forecast

Current trend

British macro-economic statistics released on Wednesday provided support to the Pound. It became known that number of claims for unemployment benefits was above the forecast and the previous level. However, despite this positive fact the pair GBP/USD was not able to go above the level of 1.6650. In the afternoon the situation has dramatically changed and the USD started to regain losses. The rise in the USD was caused by the outcome of two-day meeting of the US Fed where interest rate was left unchanged, while volume of asset purchase program has been reduced by 10 billion USD despite the fact that the latest US economic statistics were negative. Note also that this was the first meeting chaired by Janet Yellen. Due to strong support the USD had fallen to the level of 1.6507, then the USD corrected to the level of 1.6540 and keeps trading at this level.

Levels of supply and resistance

The nearest support level is 1.6540, which is the key level of the “bears”. In case this level is broken down, the price can reach new highs of 1.6505 and 1.6470. Resistance levels are 1.6575, 1.6600 and 1.6620, 1.6650.

Trading tips

Short positions can be opened after consolidation of the price below the level of 1.6540 with the target of 1.6470. It also makes sense to place limit sell orders at the level of 1.6600.

 

Ilya Lashenko

Analyst of LiteForex Group of Companies

Thursday, 20 Mar, 2014 / 10:36

Source : http://www.liteforex.com/

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