Current trend
Last Friday the British Pound slightly weakened due to expectation of the rise in interest rate by the Bank of England. British statistics was positive. Volume of industrial output increased by 0.5% against expectations of 0.3%; while trade balance deficit dropped by 0.26 billion pounds up to 8.48 billion pounds.
This data has become another link in the chain of positive economic data, demonstrating recovering of British economy. This news has increased investors’ anticipation that interest rates can be raised at the beginning of the next year.
Levels of support and resistance
The nearest resistance levels: 1.6888 (50% of the daily range of last Friday), 1.6938 (highs of last Friday), 1.7000 (important psychological level).
Support levels: 1.6831 (moving average with the period of 21 days), 1.6800 (important psychological level), 1.6755 (moving average with the period of 50 days), 1.6610 (moving average with the period of 100 days).
Trading tips
It is recommended to open short positions after breakdown of the level of 1.6831 with protective orders at 1.6850 and a target of 1.6755. Buy positions are recommended from the level of 1.6888 with the target of 1.6938 and stop-loss at 1.6870.
Andrey Cherkas
Analyst of LiteForex Investments Limited
