Current trend
Today the release of April’s Retail Sales has pushed GBP/USD up to the two-week highs at 1.6920. Volumes of the sales in Great Britain have reached the levels of 6.9% and 1.3% in annual and monthly estimation respectively. At this time any positive stats from UK strengthen the Pound, because investors are waiting for BOA to increase interest rate. Although Mark Carney announced that there won’t be any changes until 2015, but the increasing inflation can make him change his mind.
Support and resistance
After such an abrupt rise we expect technical correction to the levels of 1.6880 and 1.6865. The breakthrough of the upper MA of Bollinger band confirms the possibility of the correction. However, the price will probably continue to grow and reach resistance levels of 1.6960 and 1.7000. MACD histogram has crossed the zero line from below, giving a signal to buy. Stochastic lines are directed upwards and move towards the overbought zone.
Trading tips
Long trades can be opened at 1.6880 with targets around 1.6960.
Dmitriy Zolotov
Analyst of LiteForex Investments Limited
