GBP/USD: general analysis for October 29, 2013

October 29, 2013

Current trend 

The Pound has pushed off from the upper limit of the ascending channel and is trading at the level of 1.6141. In general, the British currency is attractive for investments. The latest economic data showed that British GDP has increased by 0.8% in Q3.

However, economists believe that British economy is far from full recovery. We would like to remind that in August Central Bank of England left interest rate unchanged at the level of 0.5%. Monetary policy will remain unchanged until unemployment rate does not drop below 7%. According to estimates of the Central Bank this process may take up to 3 years. On the other hand, officials are not going to increase volume of quantitative easing in the near future, which will certainly have a positive effect on the Pound rate against other major currencies.

Attention this week shall be paid to fundamental data on sentiment index GFK and mortgage lending in Great Britain.

Support and resistance

The nearest resistance level on the daily chart is 1.6255. Support level: 1.6065.

Trading tips 

It is recommended to open long positions from the level of 1.6265  with the target of 1.6448 and protective orders near 1.6230. 

Dmitry Agurbash

Analysts of LiteForex Group of Companies

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