Current trend
Following rapid growth and after reaching many-years highs, the pair has slowed down. This was caused by the publication of consumer price index in the UK. CPI fell below the level of 2.0%, reaching the level of 1.9% for the first time since 2009. Today investors are waiting British labour market statistics. January’s showings are expected to be positive, which will support the pair. In addition, the data on US construction sector will become known today, which can help the pair to go back to the recent highs.
Support and resistance
The nearest support levels are 1.6700, 1.6740 and 1.6774. The pair can easily overcome these levels in case of positive British macro-economic statistics. However, it will be difficult to break down key level of 1.6820 without weakening of the USD. Support levels: 1.6670, 1.6650 and 1.6600.
Trading tips
Movement in the pair will depend on fundamental news. It is likely that the pair will go up, therefore it makes sense to open long positions above the level of 1.6740 Limit sell orders can be placed at the level of 1.6800.
Ilya Lashenko
Analyst of LiteForex Group of Companies
