Current trend
On Tuesday the pair unsuccessfully tried to break down resistance level of 1.6470. Then the Pound moved down and in anticipation of macro-economic statistics. Movement in the pair was affected by the US producer price index, which became known on Wednesday. The index was above forecast and the pair fell to the level of 1.6325. Today the pair continues to trade in the narrow range of 1.6375-1.6350. US statistics, which will be released today, is unlikely to cause the rise in the American currency. Forecast of the UK retail sales, which will be known on Friday, is not encouraging.
Support and resistance
The nearest resistance levels are 1.6375, 1.6400 and 1.6425; the latter one is the main target of the “bears”. Support levels are 1.6350 and 1.6325.
Trading tips
In the medium-term the pair will go down up to the level of 1.6150. Short positions are recommended below the level of 1.6325. Limit sell orders can be placed at the level of 1.6425.
Ilya Lashenko
Analyst of LiteForex Group of Companies
