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
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