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
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