Current trend

Yesterday the pair fell and showed a high volatility.

The pair was pressured as the Fed made its Interest Rate Decision. As was expected, the regulator hiked the interest rate from 0.25% to 0.5%. At the same time, at the press conference Fed Chair Janet Yellen pointed out that monetary policy will remain loose, while the rate hike is a sign of a trust in economic recovery.

On the other hand, the pair is supported by poor macroeconomic data form the US, where Industrial Production in November shrank by 0.6%, while the Markit Manufacturing PMI fell from 54.0 to 51.3 points.

Support and resistance

Bollinger Bands on the daily chart is moving horizontally while the price range is widening. At the same time, the indicator is forming a signal for a correctional growth. MACD keeps falling. Stochastic reached the oversold zone but continues moving down.

The indicators recommend waiting for clearer trading signals.

Support levels: 1.4956 (8 December low), 1.4922 (local low), 1.4894 (2 December low), 1.4855, 1.4811 (16 April low).

Resistance levels: 1.5000 (psychologically important level), 1.5026, 1.5053, 1.5085, 1.5125, 1.5158, 1.5200 (14 December low), 1.5239 (11 December low), 1.5264, 1.5300.

Trading tips

Long positions can be opened after the price consolidation above the level of 1.5000 with targets at 1.5055, 1.5130 and stop-loss at 1.4970. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 1.4920 with targets at 1.4850, 1.4800 and stop-loss at 1.4950. Validity – 2-3 days.

GBP/USD: pair continues falling

GBP/USD: pair continues falling




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



!-- Go to www.addthis.com/dashboard to customize your tools -->