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GBP/USD: Pound regains its losses
Current trend
On Monday the pair GBP/USD traded with low volatility. British data on mortgage lending and manufacturing activity index had not affected exchange rate of the national currency. However, strong data on US business activity index added momentum to American currency and the pair GBP/USD went down to support level of 1.6660.
Today, British currency has started to regain losses and the pair GBP/USD is trading at the level of 1.6690. However, demand for American currency is gradually increasing due to the positive data from manufacturing sector and the rise in consumer confidence index. The data on business activity index in the British construction sector will be of interest today. If this index justifies negative expectations, the pair will continue to decline.
Support and resistance
In the medium-term the pair GBP/USD will move in the upward channel, but it will be difficult for the pair to reach local highs. It is likely that following the rise to the key resistance level of 1.6810 the pair will decline to the strong support level of 1.6540.
Support levels: 1.6660, 1.6600, 1.6540, 1.6470 and 1.6400.
Resistance levels: 1.6730, 1.6810 and 1.6900.
Trading tips
It is recommended to open pending short positions from resistance levels of 1.6730 and 1.6810 with profit taking at the level of 1.6490.
Dmitry Likhachev
Analyst of LiteForex Group of Companies
Current trend
On Monday the pair GBP/USD traded with low volatility. British data on mortgage lending and manufacturing activity index had not affected exchange rate of the national currency. However, strong data on US business activity index added momentum to American currency and the pair GBP/USD went down to support level of 1.6660.
Today, British currency has started to regain losses and the pair GBP/USD is trading at the level of 1.6690. However, demand for American currency is gradually increasing due to the positive data from manufacturing sector and the rise in consumer confidence index. The data on business activity index in the British construction sector will be of interest today. If this index justifies negative expectations, the pair will continue to decline.
Support and resistance
In the medium-term the pair GBP/USD will move in the upward channel, but it will be difficult for the pair to reach local highs. It is likely that following the rise to the key resistance level of 1.6810 the pair will decline to the strong support level of 1.6540.
Support levels: 1.6660, 1.6600, 1.6540, 1.6470 and 1.6400.
Resistance levels: 1.6730, 1.6810 and 1.6900.
Trading tips
It is recommended to open pending short positions from resistance levels of 1.6730 and 1.6810 with profit taking at the level of 1.6490.

Dmitry Likhachev
Analyst of LiteForex Group of Companies