Current trend
Retail sales in the UK grew by 0.3% in October which was higher than expected (0.1%) and much higher than in the previous period (-0.7%). At the same time, the growth of retail prices slowed down by 0.3% YoY. In view of this the pound managed to strengthen against USD. The pair moved away from the support level of 1.3150 and consolidated above 1.3200.
The number of initial jobless claims exceeded the outlooks and made up 249K. Industrial output in October grew by 0.9% which was above expectations. Still, USD remains very unstable waiting for a decision on the new tax reform.
Today traders have to pay attention to the release of the data on the US construction sector, namely changes in the number of construction permits and new residential houses (15:30 GMT+2).
Support and resistance
On the H4 chart the instrument is growing along the upper border of Bollinger Bands. The price range has widened. MACD indicator is in the positive area, and the signal line crosses the body of the histogram from below, giving a signal for the opening of buy positions.
Support levels: 1.3200, 1.3160, 1.3130, 1.3100, 1.3070, 1.3050.
Resistance levels: 1.3250, 1.3300.
Trading tips
Sell positions may be opened from the level of 1.3200 with targets at 1.3160, 1.3100 and stop-loss at 1.3230.
Long positions may be opened from 1.3260 with targets at 1.3300, 1.3320 and stop-loss at 1.3230.
The period of implementation is 1-3 days.
Retail sales in the UK grew by 0.3% in October which was higher than expected (0.1%) and much higher than in the previous period (-0.7%). At the same time, the growth of retail prices slowed down by 0.3% YoY. In view of this the pound managed to strengthen against USD. The pair moved away from the support level of 1.3150 and consolidated above 1.3200.
The number of initial jobless claims exceeded the outlooks and made up 249K. Industrial output in October grew by 0.9% which was above expectations. Still, USD remains very unstable waiting for a decision on the new tax reform.
Today traders have to pay attention to the release of the data on the US construction sector, namely changes in the number of construction permits and new residential houses (15:30 GMT+2).
Support and resistance
On the H4 chart the instrument is growing along the upper border of Bollinger Bands. The price range has widened. MACD indicator is in the positive area, and the signal line crosses the body of the histogram from below, giving a signal for the opening of buy positions.
Support levels: 1.3200, 1.3160, 1.3130, 1.3100, 1.3070, 1.3050.
Resistance levels: 1.3250, 1.3300.
Trading tips
Sell positions may be opened from the level of 1.3200 with targets at 1.3160, 1.3100 and stop-loss at 1.3230.
Long positions may be opened from 1.3260 with targets at 1.3300, 1.3320 and stop-loss at 1.3230.
The period of implementation is 1-3 days.