Current trend
At the end of trading session on Tuesday the Pound strengthened against the USD, rising for about 130 points. At the moment the pair is trading near the upper limit of the channel at the level of 1.6746. If this level is broken down, the Pound can go up to the levels of 1.6900-1.7000.
The British currency is supported by positive macro-economic data. Industrial output in Britain increased by 0.9% in February, production in the manufacturing sector rose by 1.0%. These indices prove that British economy is recovering unlike the economies of EU and other countries, which makes the Pound attractive for investing funds. Analysts also note that if statistics is going to be positive in future, Central Bank of England can raise interest rate, which will trigger to rise in exchange rate.
British data on foreign trade balance for February will be released today; according to forecast the index will remain unchanged at the level of -9.2 billion pounds. Therefore high volatility during European session is not expected.
Support and resistance
The nearest resistance level is 1.6755 – the upper limit of the trading channel.
Support level is 1.6630 – moving average with the period 200.
Trading tips
It is recommended to open long positions after breakdown of the level of 1.6746 with stop-loss at 1.6710 and a target of 1.6820.
Dmitry Agurbash
Analysts of LiteForex Group of Companies
