Trading news

GBP/USD: general analysis

Current trend 

Despite poor data on British budget surplus the Pound has not lost investors’ appeal. UK trade balance has reached the level of 4.7 billion pounds, which is 6 billion less than the value in the previous year. In addition, public debt of the country is still very high amounting to 1.74 trillion pounds or 74.6% of GDP.

The data on British mortgage lending will become known today; according to preliminary estimates this index will grow up to 1.8 billion pounds. Growing prices of real estate increase aggregate demand, making this sector attractive for investments. US data on personal income and private consumption expenditure will be of interest as well. Both indices are likely to grow.

Support and resistance

The Pound continues to trade near the upper limit of the sideways channel (1.6766). If this level is broken down the pair GBP/USD is likely to go up to 1.6820. Technically, the Pound looks stronger than the USD; therefore, the rise in the pair is probable. The nearest support level is the bottom limit of the trading channel at the level of 1.6613.

Trading tips 

It is recommended to open long positions after breakdown of the level of 1.6766 with stop-loss orders at 1.6750 and a target of 1.6817.

 

Dmitry Agurbash

Analysts of LiteForex Group of Companies

Tuesday, 04 Mar, 2014 / 7:43

Source : http://www.liteforex.com/

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