GBP/USD: The pair made several attempts of breaking above a level of 1.5050 yesterday

January 27, 2015

Current trend

The pair made several attempts of breaking above a level of 1.5050 yesterday, and managed to consolidate above a level of 1.5070 (38,2% Fibonacci).

The information on UK GDP published today turned out to be worse than predicted and made the pair drop to a level of 1.5050. However, the pair regained the previous levels almost immediately. Investors will be waiting for today's information on construction orders and US consumer confidence index, but the main attention will be focused tomorrow on the Fed's comments regarding the monetary policy. Investors are particularly interested in the comments on an upcoming interest rate rise that might happen in the middle of this year, according to most analysts.

Support and resistance

The closest resistance level and at the same time bulls' main target is 1.5110. Its breakout will open a way to new levels which are 1.5125, 1.5150, and 1.5175. The support levels are 1.5075, 1.5060, 1.5030, and 1.5000.

Trading tips

Long positions should be opened above a level of 1.5110 with targets at 1.5150 and 1.5200. Sell after the price has consolidated below 1.5050. Buy Limit orders should be placed at 1.5200 and 1.5150.

Ilya Lashchenko,
Analyst at LiteForex Investments Limited

Publication source
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