Upward momentum of the pair maintains, in the end of the trading week it strengthened due to growth of demand on the British currency.
The additional factor of the further strengthening of the instrument was the weakening of USD after the commentaries of Fed’s official, who said that the further interest rate increase would depend on the stability of the economy growth and inflation strengthening. This made the investors doubt if the US monetary policy will be tightened this year, and the currency began to lose investment attractiveness.
In the end of the week, employment market data and key indices will be published in the USA. Markit Manufacturing PMI will be released in the UK.
Support and resistance
Pound can grow further due to the trading moods. If US statistics is poor, the pair can strengthen further. Another catalyst of the momentum maintenance is the long-term upward trend: in the beginning of November, the pair reached lower border of the channel, rebounded, went upwards and now can test this year maximum at the level of 1.3650 and reach the new one. Technical indicators confirms the growth, on the daily chart MACD long positions volumes are rapidly growing, Bollinger Bands restructured and are pointed upwards.
Resistance levels: 1.3480, 1.3515, 1.3615, 1.3650, 1.3690, 1.3735.
Support levels: 1.3450, 1.3400, 1.3350, 1.3320, 1.3175, 1.3120, 1.3020, 1.2930, 1.2805.
It is relevant to increase the volume of long positions at the current level with the targets at 1.3610, 1.3650, stop loss is 1.3150.