GBP/USD: general analysis
The British Pound failed to break down resistance level of 1.6841 (2/8 Murray level) and corrected to the level of 1.6820. If the level of 1.6841 is not broken down in the near future, the pair is likely to go down to the level of 1.6724 (1/8 Murray).
Tomorrow volatility may increase due to the release of the block of macro-economic news, including important British data on consumer price index. If the basic index grows, it will mean the rise in inflation and the Central Bank of England will have to introduce additional measures to control prices by way of rising interest rate. If the rate increases, it will lead to the rise in the national currency. In addition, recent rise of the minimal wages up to 6.5 pounds per hour indicates recovery of the British economy and will have a positive impact on the exchange rate of the Pound.
Support and resistance
The nearest resistance level is 1.6846 (2/8 Murray). Support level is 1/8 Murray (1.6724).
It is recommended to open long positions after breakdown of the level of 1.6846 with stop-loss at 1.6810 and the target of 1.6970.
Analyst of LiteForex Investments Limited