GBP/USD: Pound will continue to go down with the target of 1.5410

December 8, 2014

Current trend

At the beginning of the last week the USD had considerably weakened against the major currencies; however favourable US labor market data provided support to the American currency. Nonfarm payroll has exceeded the forecast and the pair GBP/USD fell to the key support level and the local lows of 1.5600. Last week trading session closed at the level of 1.5570. At this week opening session the pair continued to move down by inertia and is now trading at the level of 1.5550. We do not expect any important UK or US news today, which news that the pair will consolidate and high volatility is unlikely.

Levels of support and resistance

It is expected that the pair will undergo minor upward correction and then will move in the sideways channel. Next key support level is 1.5410, which is also a bottom limit of the downward channel and the local lows of August 2013. In the medium-term it is likely that the pair will go down to the target levels of 1.5410 and 1.5275.

Support levels: 1.5550, 1.5500, 1.5470, 1.5410, 1.5300 and 1.5275.

Resistance levels: 1.5600, 1.5630, 1.5670,1.5720, 1.5750, 1.5790, 1.5875 and 1.5910.

Trading tips

In the current situation it makes sense to open short positions with stop-loss above the level of 1.5600 and take profit at 1.5410.

Dmitry Likhachev,

Analyst of LiteForex Investments Limited

Publication source
LiteForex information  LiteForex reviews

March 1, 2017
Market Volatility Expected Ahead of President Trump's Speech
In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...
March 1, 2017
Oil in danger of sharp reversal
The price of oil has pulled back today after a Jump in US oil inventories which analysts say offset any production cuts from OPEC...
February 28, 2017
Gold opened the week inside of a consolidation zone
A close below the support at 1250 could see XAU/USD extend its declines down to 1240. Nevertheless, the upward structure remained in place. The lower limit of the upward channel lies around 1240. Buyers may find fresh bids around the level...

NPBFX Rating
Orbex Rating
Fort Financial Services Rating
FOREX.com Rating
Exness Rating
Grand Capital Rating

Anyoption Rating
GTOptions Rating
OptionBit Rating
Binary.com Rating
OptionFair Rating
Binary Brokerz Rating