The British Pound continues to trade in the ascending channel. The pair GBP/USD has gained 345 points in November and the last line of defense is a strong resistance level of 1.6258. When the pair approaches this level, the power of uptrend will likely weaken, giving a chance of technical correction or a change in the trend.
Despite gradual recovery of the British economy fundamental data of this week is not favourable for the Pound. Volume of consumer lending fell to 940 million in October. Such rapid fall is a sign of slowdown of business activity in the country. Meanwhile the data on mortgage lending is on the contrary demonstrates positive dynamics: the index reached 9.9 billion pounds in October-the record value since 2009.
British macro-economic statistics will add volatility to the Pound today: GDP and index of retail sales will become known.
Support and resistance
On the four-hour chart the nearest resistance level is recent highs of 1.6230. Next resistance level and the target of the “bulls” is 1.6258. Support level is 1.6131
It is recommended to open long positions after breakdown of the level of 1.6230 with the target of 1.6450 and stop-loss near 1.6200
Analyst of LiteForex Group of CompaniesPublication source