Current trend

Yesterday, the USD has grown against the Pound and the other currencies due to positive US labor market statistics. It became known that initial applications for unemployment benefits fell to 276 thousand against the forecast of 279 thousand and the previous level of 284 thousand.

On the other hand, the Pound fell after the decision of the Bank of England to keep interest rate at the record low of 0.5%. Volume of asset purchase was also left at the previous level of 375 billion pounds.

Most traders have adopted a wait and see approach, in anticipation of the release of the US non-farm payroll.

Support and resistance

The price is moving in the upward channel. In case of the positive US news the price can break down support level before the lines A or B. 

The nearest resistance level is 1.5440 (highs of this week). Support level is the local lows of 1.5268.

Trading tips

It makes sense to open short positions at the current price with stop-loss at 1.5440 and take profit at 1.5268

GBP/USD: general analysis

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