GBP/USD: new highs in a New Year

December 31, 2013

Current trend

Despite the fact that the pair GBP/USD has reached the highs, investors continue to buy British currency. Following breakdown of the strong resistance level of 1.6460 the pair is likely go up to the highs of 1.6600 and 1.6740. In the last six month of 2013 growth rate of British economy has significantly accelerated, GDP in Q3 amounted to 1.9%. At the same time American economy did not justify the forecast for 2013 despite positive performance of the labour market.

Support and resistance

Volatility is not expected to be high today. Many investors and traders have already finished trading year of 2013. Next year the pair will strengthen due to positive British fundamental statistics. Expected highs for the next year are 1.6600 and 1.6740.

Support levels: 1.6460, 1.6320 and 1.6200.

Resistance levels: 1.6600 and 1.6740.

Trading tips

It is recommended to open long positions with profit taking at the level of 1.6720. Pending sell orders can be placed at the level of 1.6730.

Dmitry Likhachev
Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

September 23, 2016
Gold rises to critical level on lower-for-longer policy signals
The price of gold extended its rebound modestly on Thursday after the US Federal Reserve provided some key signals on Wednesday that, despite a considerable probability of one Fed rate hike by the end of this year...
September 22, 2016
Moving on from the Fed
The reaction seen in currency markets yesterday to respective central bank policy decisions was instructive of the change in dynamics that we’re seeing. The BoJ enacted a number of changes to its policy regime...
September 21, 2016
Bank of Japan runs out of road
The Bank of Japan delivered a whole heap of nothing at its policy meeting today, although some adjustments were made to its policy framework. If you take the time to read through these measures, then the impression is of a central bank that has largely lost the monetary plot...

Larson&Holz IT Ltd Rating
Vantage FX Rating
XM Rating
FOREX.com Rating
FXTM Rating
FxPro Rating

Porter Finance Rating
24option Rating
365BinaryOption Rating
OptionFair Rating
OptionsXO Rating
TropicalTrade Rating