Current trend
Yesterday, the exchange rate of the pair GBP/USD has practically not changed. Low volatility was caused by expectations of the minutes of the meeting, which the US Fed is going to issue this week. Market participants do not rush, as they are eager to hear assessment of the economic situation from the US monetary authorities.
On the daily chart the pair is trading near the moving average with the period 21 (1.6820). Demand for the British currency is still high and investors expect that the Bank of England will raise interest rate.
Inflation report by the National Statistics Office will be released today, which may encourage the regulator to raise interest rates.
Support and resistance
Resistance levels are the local highs of 1.6845, 1.6900 and 1.6996. Support levels are 1.6783 (lows of 16, May), 1.6731 (moving average with the period 50), 1.6700 (important psychological level) and 1.6615 (moving average with the period 100).
Trading tips
It makes sense to sell after breakdown of the level of 1.6783 with the first target of 1.6731. Long positions can be opened above the level of 1.6845 with the first target of 1.6900.
Andrey Cherkas
Analyst of LiteForex Investments Limited
