Current trend
The pair GBP/USD continues to trade in the narrow range near important resistance level of 1.6470. It was a public holiday in the USA yesterday; there was no UK news coverage either. Today, economic calendar is still uneventful and the pair will continue to move in the sideways channel. Tomorrow attention shall be paid to the UK labour market statistics and the minutes of the meeting of the Bank of England.
Support and resistance
Despite low volatility, the pair may go down to the level of 1.6350 today. Tomorrow the pair may get significant support from macro-economic statistics and soar up to strong local highs of 1.6540 and 1.6600. If the data fails to meet forecast, the USD will start to slowly regain positions and the pair may fall to the level of 1.6200.
Support levels: 1.6320, 1.6200, 1.6100 and 1.5920.
Resistance levels: 1.6470, 1.6540 and 1.6600.
Trading tips
It is recommended to open short positions with take profit at the level of 1.6200. Pending orders to sell can be placed from the level of 1.6540 in view of upward correction.
Dmitry Likhachev
Analyst of LiteForex Group of Companies
