Current trend
Marco-economic indicators in the UK continue to grow, supporting the Pound rate. National statistics shows that trade deficit fell to 9.7 billion pounds. One of the reasons of improvement in the index is the growth of output in manufacturing industry, which has reached the level of 0.4%. Indices of industrial sector are high as well: production volumes increased to the level of 3.2% on annual basis.
However, the risks for all currencies, including the Pound are high, as next week the US Fed can adopt the decision to reduce quantitative easing programs. Sudden movement at Forex market is not expected until 17 December.
Support and resistance
The Pound had reached annual highs of 1.6460 pounds and shifted to the smooth correction, trading in the range of 1.6375-1.6350. The nearest support level is the lower limit of the trading channel (1.6305). If this level is broken down the movement can reach the level of 1.6178. Resistance level is 1.6460.
Trading tips
It is recommended to open short positions below support level of 1.6305 with stop-loss near 1.6335 and a target of 1.6170.
Dmitry Agurbash
Analysts of LiteForex Group of Companies
