Current trend
On Tuesday the pair was able to consolidate above the level of 1.6820 due to positive data on the British consumer price index for April. Yesterday, the Pound managed to go up to the recent highs of 1.6900. All nine members of the Monetary Policy Committee of the Bank of England unanimously decided to leave interest rate at the previous level. The data on retail sales also confirmed economic growth in the country. Retail sales excluding sales of the cars and fuel have grown by 1.8% on monthly basis and by 7.7% on annual basis against the forecast of 0.5% and 5.4% respectively.
Today, British GDP for Q1 will become known, but it will be the second preliminary estimate. It is expected that GDP in Q1 will be 0.8%, in Q2: 0.9%. If the forecast proves to be correct, the pair may remain near the level of 1.6900.
Support and resistance
The nearest support levels are 1.6880, 1.6870, 1.6840 and 1.6830; the latter one is the target level of the “bears”. Resistance levels: 1.6900, 1.6920 and 1.6940.
Trading tips
It is likely that the pair will experience correction to the level of 1.6830; so at this level it is recommended to place limited buy orders. Short positions can be opened after consolidation of the price below the level of 1.6820.
Ilya Lashenko
LiteForex Investments Limited Analyst
