At the opening session of this week the pair reached the lows of 1.6450, and after that it started to move towards the previous levels. Throughout the week quotes have been in the uptrend. On Thursday British retail sales data became known. The index was far above the forecast, which had a positive effect on the British currency. The pair managed to consolidate above the level of 1.6600. Retail sales in February reached the level of 1.7% against the forecast of 0.5%. Experts fear that the same index in March will be weaker. British Final GDP for Q4 will be made public today, however it is not supposed to attract investors’ attention. Trading is expected to be sluggish in the narrow range.
Levels of support and resistance
At the moment the pair is testing support level of 1.6620. Next support levels are 1.6600, 1.6575, 1.6540 and 1.6500. Resistance levels: 1.6650, 1.6670. The latter one is the key level of the “bulls”
It is recommended to open long positions above the level of 1.6670. Sell orders are advisable after breakout of the level of 1.6600. It also makes sense to place limit sell orders at the level of 1.6650 with profit taking at the level of 1.6600.
Analyst of LiteForex Group of Companies