Trading news

GBP/USD: Decrease of US unemployment rate will lift USD up

Current trend

Last Friday negative statistics from the US labour market has put pressure on the USD, triggering the decline in the pair GBP/USD to 1.6500. However, forecast for the USD is still positive. It became known that unemployment rate in the US fell to 6.7%, while it was expected that the index will remain at the previous level. The UK economic indices are declining as well, indicating slowdown of economic growth in the country. On Tuesday British key indices will become known, which are expected to go up slightly. On Thursday the data on number of initial claims for unemployment benefits in the US will be released, which is expected to reduce for several thousands.

Support and resistance

In the medium-term the pair is likely to go up to resistance level of 1.6540 and after that will decline to 1.6200 and 1.5920. The rise in the USD will be supported by strong US economic indices and increasing investors’ demand for the USD.

Support levels: 1.6320, 1.6200, 1.6100 and 1.5920.

Resistance levels: 1.6470, 1.6540 and 1.6600.

Trading tips

It is recommended to place short positions with profit taking at the level of 1.5950. Pending sell orders can be placed at the level of 1.6540 with the target of 1.5950.

 

Dmitry Likhachev
Analyst of LiteForex Group of Companies

Monday, 13 Jan, 2014 / 9:35

Source : https://www.liteforex.com/

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