GBP/USD: the pair will trade in sideways channel

February 11, 2014

Current trend

Last week the pair had tested support level of 1.6265 but failed to break it down. However, following the release of American Non-Farm Payrolls index, the pair GBP/USD broke down the level of 1.6400. Yesterday’s trading was in the narrow range of 1.6390-1.6430. Today, sideways trend is likely to continue as now important news is expected. For tomorrow a speech of the head of the Bank of England is scheduled as well as quarterly report on British inflation rate. The pair may go up o the level of 1.6500, but it is doubtful that it can consolidate at this level.

Support and resistance

The nearest support levels are 1.6400, 1.6390, 1.6350 and 1.6300. Resistance levels: 1.6425, 1.6445 and 1.6485.

Trading tips

It is likely that the pair will be traded in the sideways. It is recommended to place limit orders to buy at the bottom boundary of the range (1.6390); sell orders are advisable at the level of 1.6445.

Ilya Lashenko

Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

January 17, 2017
Oil spikes higher on Saudi Oil minister comments
Oil has spiked higher on Al Falih comments in Davos (Saudi oil minister). He said during a panel discussion at WEF in Davos that there will be inflation in the cost of doing business in the oil industry, following the squeeze that accompanied the decline in crude prices...
January 16, 2017
GBP under pressure ahead of May speech
A speech from Theresa May is one of the key events for financial markets this week and certainly the most relevant for the British pound. Primie Minister is about to deliver a speech on UK’s stance and conditions ahead of the triggering article 50 and beginning the Brexit negotiations...
January 13, 2017
Yellen (Fed) with a neutral message but USD starts to fight back
USD was taking damage from the Wednesday Donald Trump specch until yesterday evening. Lack of details on economic and fiscal agenda at the first press conference of the president-elect caused a correction on equities boosted since the US elections...

Fort Financial Services Rating
Orbex Rating
FOREX.com Rating
XTB Rating
Larson&Holz IT Ltd Rating
XM Rating

Grand Option Rating
Anyoption Rating
Beeoptions Rating
EZTrader Rating
Empire Option Rating
Banc De Binary Rating