Trading news

GBP/USD: USD shall regain investors’ interest

Current trend

Yesterday, British negative macro-economic statistics put significant pressure on the pair. It became known that PMI in the service sector fell below expectations, amounting to 60 points. The pair went down to support level of 1.6330, and later, rolled back to the 1.6380. Additional pressure on the pair was provided by the news on the increase in number of jobs in the US private sector; however, weak statistics on the American construction sector weakened the USD once again. 

This morning, the pair continued to strengthen amid expectations of the decision of the Bank of England on the key interest rate and volume of the assets purchase. It is likely that the Bank of England will remain interest rate unchanged because growth rate of British economy is increasing reaching pre-crisis level. This afternoon US GDP for Q3 will become known and number of applications for unemployment benefits.

Support and resistance

Today, the pair can test recent local highs of 1.6450. However, it is likely that in future downtrend will develop amid US FOMC decision on phasing out QE3. MACD indicator demonstrates divergence. In the medium-term GBP/USD will decline to 1.6260 and 1.6100.

Support levels: 1.6300, 1.6260 and 1.6200.

Resistance levels: 1.6450 and 1.6600. 

Trading tips 

It is recommended to place sell orders with profit taking at the level of 1.6260. Pending sell orders can be placed from the level of 1.6440.

 

Dmitry Likhachev
Analyst of LiteForex Group of Companies

Thursday, 05 Dec, 2013 / 9:53

Source : https://www.liteforex.com/

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