GBP/USD: the rise to the local highs at 1.7000
As expected, following deep correction, the pair had reached the lower limit of the channel (1.6750), pushed off from this level, and started to rise. Yesterday, the pair has gained strength, due to positive data on the key British indices (CPI, PPI, RPI), and started to rise. It became known today that British retail sales in April rose by 1.3% exceeding the forecast of 0.4%. Following the release of this news, the pair has reached resistance level of 1.6920.
Today, investors will be focused on the speech of the US Fed leader, Janet Yellen and the minutes of the meeting of the US FOMC. It is not expected that the USD will rise significantly, as economic indices in the major industrial sectors are negative. The Pound, on the contrary, has received strong support from economic statistics. If economic growth rate in the UK continues to increase, the pair will reach the key resistance level and the local highs of 1.7000.
Support and resistance
Support levels: 1.6830, 1.6750, 1.6700 and 1.6600.
Resistance levels: 1.6900, 1.6920, 1.7000, 1.7050 and 1.7100.
It is recommended to place long positions and pending long positions from the level of 1.6830 with take profit at the level of 1.7000 (1.7100).
Analyst of LiteForex Investments Limited