During yesterday trading, the USD slightly rose against all major currencies; but in the afternoon, it fell against the Pound. UK trade balance deficit amounted to 2.094 billion pounds, which was much better than the forecasted 3 billion pound and the previous deficit of 3.429 billion. The data on retail sales, released by the British Retail Consortium (BRC), remained at the previous level of 0%, while the last month’s sales fell by 2.4%.
Demand for the USD is still rising in the wake of the positive data on the US employment, released last Friday. However, at the G7 Summit on Monday, Obama said that the strong dollar can become a problem for the economic development of the country.
Today, the British industrial production data will be released as well as the evaluation of GDP growth, which can provide a strong support to the Pound if statistics are positive.
Support and resistance
The nearest resistance level is the high of the last week (1.5440). Support level is the moving average line with the period of 20 (1.5331).
It is recommended to open long positions from the level of 1.5383 with the target of 1.5440 and stop-loss at 1.5331.In case of the negative statistics release, close the positions at the current price.