Trading news

GBP/USD: labour market stats will determine next trend

Currenttrend

On Wednesday the pair was trading around key resistance level of 1.6660 due to the unfavourable stats from UK and USA. British Construction PMI reached only 9.5%, although the forecast was 9.6%. US ADP data were also lower than expected, however Factory Orders exceeded forecasts.

Regardless of economic slowdown in UK, the demand of the Pound is still high and keeps the pair around local maximums. Friday’s release of Non-Farm Payrolls may drastically change the trend. However, if the data are negative, the pair will break through key resistance and go up to the level of 1.6900.

Today investors are waiting for the Services PMI of UK and USA as well as Unemployment Claims in USA.

Support and resistance

Support levels: 1.6600, 1.6550, 1.6470, 1.6400.

Resistance levels: 1.6660, 1.6700, 1.6760, 1.6810, 1.6900.

Tradingtips

Pending buy orders can be placed above 1.6660 in anticipation of resistance breakdown and the rise up to 1.6900. Short positions with stop-losses at 1.6690 (1.6700) and take-profits at 1.6400 should be opened at current price.

 

Dmitriy Likhachev

Analyst of LiteForex Group of Companies

Thursday, 03 Apr, 2014 / 10:06

Source : http://www.liteforex.com/

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