18, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

British pound returned to the leader place and strengthened against all majors. Great Britain’s economic data noted the labor market very good indexes thus supporting the sterling. The news was significantly better than it was expected and even pointed out that unemployment was below the level that the Bank of England was expected.

Though the pound has still some area for growth on employment information support, but the coming holidays and the strong technical levels have a deterrent effect.

The support is 1.6800. The resistance is 1.6850.

Trading Recommendations

It should be noted that the British pound’s growth against the U.S. dollar is continued at weak volumes. First of all it says about the short-term correction back to the 1.6800 level, which will become a support.

The 1.6800 retest is more likely to be followed by the price upwards rebound. The potential growth targets are 1.6850 and 1.6900.