British currency can’t leave the long term sideway trend. Since the beginning of October the GBP/USD pair is trading within the channel of 1.3320–1.3040.
The main catalysts of the movement are mixed UK releases and uncertainty upon USA Fed’s further . Last week pound was significantly falling against US dollar due to poor and key indices data, but in the end of the week it insignificantly regained the loss due to positive Retail Sales data publications.
Today the demand on GBP is growing, which let the pair consolidate in the middle term upward channel. This week USA FOMC Minutes, employment market data and Durable Goods Orders releases are worth traders’ attention. Economy growth rate and home loans data will be published in the UK.
The pair consolidated in the middle term upward range, and the upward momentum can grow to the highs of the middle of October (1.3335) and the beginning of November (1.3310). USD is weakening due to investors’ doubt is the would be tightened once more this year. There are a number of strong resistance levels on the way of the pair, and the price can be significantly corrected or the trend can change at these levels.
Technical indicators confirm the further growth forecast. On the 4-hour chart long positions volumes are growing, are pointed upwards.
Resistance levels: 1.3310, 1.3320, 1.3350, 1.3380, 1.3400, 1.3450.
Support levels: 1.3250, 1.3225, 1.3200, 1.3150, 1.3110, 1.3070, 1.3040, 1.3000.
It’s better to increase the of long positions with the targets at 1.3350, 1.3400, stop loss is 1.3185.