In January the pair had reached the highs of 1.6600, however failed to maintain at this level and fell to the level of 23.6% (1.6425) Fibonacci retracement. This week the Pound traded in the narrow range of 1.6350-1.6420 against the USD. It is likely that the pair will repeat the attempt to break down the level of 1.6600. The pair is in the bottom of the ascending channel, trying to regain lost positions. Technical indicators do not give clear signals, showing sideways movement.
Support and resistance
The nearest resistance level is 1.6425 (23.6% Fibonacci retracement), which will be followed by 1.6465, 1.6500, 1.6540 and 1.6600. Support levels are the local lows of 1.6350 and 1.6310.
It is recommended to open short positions after consolidation of the price below the level of 1.6350. Pending buy orders can be placed above the level of 1.6430 with the target of 1.6600.
Analyst of LiteForex Group of CompaniesPublication source