GBP/USD: USD will continue to strengthe on 03.02.2014

February 3, 2014

Current trend

At the end of last week the pair GBP/USD met expectations of decline reaching the level of 1.6415. On one hand, the decline was caused by favourable macro-economic statistics from the USA, on the other hand, by the decrease in demand for the British currency. American indices of personal expenses, purchasing managers and labour costs have been above the forecast.

Today’s attention shall be focused on manufacturing activity index PMI in Great Britain. In addition, the US data on construction expenses and business activity in manufacturing sector will become known. According to forecast British PMI will decline, causing weakening in the Pound. Forecast for American news is positive. In the medium-term the pair will continue decline to support level of 1.6320, after which the pair may experience slight upward correction and then will continue to move in the downtrend.

Support and resistance

Support levels: 1.6320, 1.6200, 1.6100 and 1.5920.

Resistance levels: 1.6450, 1.6540, 1.6600 and 1.6660.

Trading tips

It is advisable to place sell orders with profit taking at the level of 1.6100.

Dmitry Likhachev
Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

September 30, 2016
Euro continues to trade sideways inside a 100pips range
Looking at the hourly chart, the pair still fighting to overtake 1.1235 barrier, which is considered as the near-term resistance for the single currency...
September 29, 2016
Will Brexit be more painful for Europe rather than for the UK?
The risk is increasing on the market ahead OPEC meeting in Algiers and Yellen testimonial, which will happen before the House panel. FED-fueled rally on gold starts to fizzle out as the December futures keep on a losing streak for a second day, finally dipping by 0.12% to 1,328.75...
September 28, 2016
US presidential debate moves unwind
The market’s initial response to the US presidential election debate overnight was a clear sigh of relief. The Mexican Peso, which had hit a record low against the dollar just the day before, surged higher, as too did the Canadian dollar...

HYCM Rating
Tickmill Rating
OANDA Rating
HotForex Rating
Larson&Holz IT Ltd Rating
FOREX.com Rating

OptionRally Rating
Empire Option Rating
Anyoption Rating
TopOption Rating
Banc De Binary Rating
OptionTrade Rating