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  • Market News
  • 17 July 2017 :: GBP/USD: downward correction is expected
17 July 2017

GBP/USD: downward correction is expected

By Kristina Leonova: Chief Analyst in the Investment Research Department

GBP/USD: downward correction is expected
The British currency continued to strengthen against USD in view of growing investors' interest to the pound. In the end of the previous trading week, the UK released positive data on the labor market increasing the demand that was already high.
At the same time, the rate of USD continued to fall in view of the negative fundamental background. Weak data on retail sales, labor market, consumer prices index and a number of other basic indexes had been released by the end of the previous week. All these factors gave the pair an opportunity to break through the strong resistance level and local maximum 1.3040 and to test the level of 1.3115.
The beginning of the current week is characterized by minor downward correction caused by fixing long positions at local maximums. Special attention during the week should be paid to the data on major indexes and retail sales in the UK.
The pair remains in the upward range and in the short term may move to the upper border of the upward channel — 1.3255. Long downward correction is expected later on in view of changes in trading tendencies and growth of demand for the weakened USD. Technical indicators continue to point out further growth: MACD shows the growth in the volume of long positions, and the upper line of Bollinger Bands on the weekly chart indicates the next target of the pair at 1.3255.
Support levels: 1.3040, 1.2990, 1.2950, 1.2890, 1.2830, 1.2770, 1.2620, 1.2560, 1.2500, 1.2365.
Resistance levels: 1.3115, 1.3155, 1.3200, 1.3255, 1.3300, 1.3370.

This website/communication is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. It has been prepared by Liteforex (Europe) Ltd (ex. Mayzus Investment Company Ltd) without taking into account any particular person's objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision. Past performance is not indicative of future performance. The future value of your investment may rise and fall with the changes in the market.
About the author
Kristina Leonova
Kristina Leonova
Chief Analyst in the Investment Research Department

Kristina Leonova is an up and coming market specialist - currently in the process of obtaining The Chartered Financial Analyst Degree in CFA Institute.

She began her career at Liteforex (ex. Mayzus) at only 20 years old, holding the position of the Assistant of the Chief Financial Officer.

She has since become invaluable to the Company, holding the position of Chief Analyst in the Investment Research Department, and now is also responsible for our world renowned market reviews.

She has a keen eye and a good gut instinct when it comes to analyzing the markets, always staying at the top of her game, with her work often being published on other websites and news vendors.

Mayzus is excited to welcome her as our new, top financial analyst.

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