Current trend
Recently, British economy is demonstrating the signs of recovery, which has a positive effect on the national currency rate. According to statistics, volume budget funds increased due to the rise in the tax rate and revival of business activity. However, economists are still concerned about the public debt, which has reached the level of 75.4% of GDP in October. However, the UK Finance Ministry reports that situation is under control and there is no cause for concern.
Support and resistance
The British currency has broken the upper limit of the trading channel on the chart H4; therefore, the rise is likely to continue. The nearest resistance line and psychologically important level is 1.6200. Support level is the upper limit of the channel (1.6165).
Trading tips
It is recommended to open long positions above the level of 1.6200 with the target of 1.6250-1.6300 and stop-loss at the level of 1.6170.
Dmitry Agurbash
Analysts of LiteForex Group of Companies
