Current trend
Yesterday morning the pair went up reaching the level of 1.6620. However, following the release of negative statistics from US labour market the pair GBP/USD returned to the previous level of 1.6700. This morning the pair was supported by positive data on the UK housing price index: this index amounted to 9.4%, exceeding the forecast of 9.0%.This fact has been a strong catalyst enabling rapid rise in the pair. Another important event will be a speech of the head of the Bank of England, Ben Bernanke today. He will evaluate economic situation in Great Britain. Acceleration of economic growth may lead to changes in the monetary policy. In addition, some American news will also become known, such as: revised GDP, consumer sentiment index and index of sentiment of purchasing managers. According to preliminary data economic growth rate in the USA is slowing down; GDP for Q4 is going to be revised from 3.2% to 2.6% Positive assessment of British economic situation by Mark Carney and negative revision of the US GDP have led to the rise in the pair up to the recent local highs of 1.6810.
Support and resistance
Support levels: 1.6660, 1.6600, 1.6540 and 1.6470.
Resistance levels: 1.6730, 1.6810 and 1.6900.
Tradingtips
It is advisable to place pending long positions to buy above the level of 1.6810 with profit taking at the level of 1.7000. Pending sell orders can be placed from the local highs of 1.6800 with profit taking from the local highs with profit taking at the level of 1.6600 and a short stop-loss.
Dmitry Likhachev
Analyst of LiteForex Group of Companies
