Current trend
Last week was mixed for the pair. Positive UK news helped the pair reach the highs of the year 2009 at the level of 1.6920. However, the pair has failed to maintain this level and is now trading below the level of 1.6900. US data on NFPR, released last Friday, had increased market volatility, nevertheless by the end of Friday’s trading session the pair resumed its previous course. Yesterday, the pair traded in the narrow channel and today, situation is likely to remain unchanged. Obviously, the “bulls” will try to overcome resistance level of 1.6920, but they will need strong momentum and positive UK statistics, confirming economic recovery in the country.
Support and resistance
Resistance levels are 1.6900 и 1.6920, the latter one is the key target of the “bulls”. Support levels: 1.6880, 1.6870, 1.6857 and 1.6840.
Trading tips
It is likely that the pair will move in the sideways channel. Limited buy orders can be placed at the levels of 1.6900 and 1.6860. Sell orders are recommended after consolidation of the pair below the level of 1.6840.
Ilya Lashenko
Analyst of LiteForex Investments Limited
