GBP/USD: Pound is growing due to weakening in the USD

November 20, 2013

Current trend

Last night Ben Bernanke said that he supports policy of Janet Yellen in regard to economic stimulation. According to him it is necessary to make all efforts for full recovery of the US economy. The US Fed believed that the policy of assets purchase shall be continued until stabilization of the employment rate and the decline of inflation.

Support and resistance

On the four-hour chart MACD histogram is in the positive zone below the signal line giving a sell signal. However, Stochastic lines are directed upward and are going to enter overbought zone. The nearest support level is the local lows of 1.6090, which will be followed by the levels of 1.6050 and 1.6000. Resistance levels are 1.6150, 1.6180 and 1.6210.

Trading tips

Fundamental indicators continue to put pressure on the American dollar; therefore the pair is likely to continue growth. Long positions can be opened above the level of 1.6150 with the target of 1.6210.

Ilya Lashenko

Analyst of LiteForex Group of Companies

Publication source
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