GBP/USD: US Federal Reserves decision has not changed market dynamics

December 19, 2013

Current trend

Last night, following the meeting of the US Fed it was announced that starting from the 1 January asset repurchase program would be reduced by 10 billion dollars. Market’s reaction to this news was ambiguous. At first the pair GBP/USD fell to the level of 1.6350, then rose to the level of 1.6482 however was not able to stay at this level and fell to 1.6373 where it is trading at the moment. Many analysts predict further reduction of the asset repurchase program in the near future. Today the data on British retail sales will be known, which can help the pair rise to the local highs.

Support and resistance

Resistance levels are 1.6400,1.6425 and 1.6467; the latter one is the key level of the “bulls”. Support levels are 1.6350, 1.6300 and 1.6265.

Trading tips

The pair is likely to move up to the level of 1.6425. At this level it is advisable to place Take Profit orders for long positions. Short positions can be opened below the level of 1.6300.

Ilya Lashenko

Analyst of LiteForex Group of Companies

Publication source
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