Current trend
On Wednesday the pair GBP/USD continued to strengthen. The rise was driven by preliminary GDP for Q3, as the data confirmed significant growth of British economy. GDP has grown by 1.5% on annual basis, which is the highest value since 2010. On the other hand, the American dollar is under pressure from the decrease in number of orders for durable goods in October. Amid these facts, quotes of GBP/USD rose to the highs since January at the level of 1.6327.
Support and resistance
It is expected that in near future quotes will go up to the levels of 1.6360 and 1.6400. However we cannot rule out a chance of correction to the level of 1.6280, especially if today’s speech of the head of the Ban of England will get negative assessment of investors.
On the four-hour chart technical indicators confirm possibility of growth. Bollinger bands demonstrate divergence, confirming uptrend; the price chart is breaking down the upper moving average line, suggesting correction. MACD histogram is in the positive zone, its volumes are increasing. Stochastic lines are ready to move to the overbought zone and form a buy signal.
Trading tips
In the current situation it makes sense to open long positions at the current price with profit taking near 1.6400.
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
