GBP/USD: within the overall trend
Current trend
In the overall trend of decline of the major currencies against the USD in the last days, the Pound stands out against the background. Despite moderate assessment of the state of the British economy by the Bank of England and statement by Mark Carney that the growing Pound impedes economic growth of the country, the Pound continues to resist the rising USD. The British currency has been supported in the cross-pairs EUR/GBP, GBP/NZD, GBP/AUD, where the GBP is bought actively.
Today’s US news will include: 15:30 (GMT+3) - orders for durable goods for April and orders for durable goods excluding cars for April. 16:00 (GMT+3) – housing price index for March, as per S&P/CaseShiller. 16:45 (GMT+3) – preliminary data on business activity index Markit for may and business activity index in the service sector Markit for May. 17:30 (GMT+3) – business activity index in the manufacturing sector, as per Federal Reserve Bank of Richmond. And business activity index in the manufacturing sector for May as per Federal Reserve Bank of Dallas. Later, at 18:30 (GMT+3) the data on placement of the promissory notes will be known and 20:00( GMT+3) – the data on placement of 20year bonds.
In case of the negative statistics, after today’s rapid growth at the Asian and European sessions, the USD can undergo downward correction. However, in the medium-term the rise in the USD is likely to continue.
Support and resistance
Support levels: 1.5500, 1.5530, 1.5600, 1.5670 and 1.5800.
Resistance levels: 1.5340, 1.5230, 1.5130 and 1.5065.
Trading tips
Today, it makes sense to place pending short orders Sell Limit from the levels of 1.5440, 1.5470, 1.5500, 1.5530 and 1.5600 with the targets of 1.5340 (ЕМА200 on the four-hour chart) and 1.5230 (Fibonacci 23.6%). In case of breakdown of this level, the decline in the Pound will accelerate. Targets: 1.5065, 1.4950, 1.4880 and 1.4630 (lows of April, 2015).
Analystis of LiteForex Investments Limited