GBP/USD Continues To Fall
LiteForex Europe | Jan 10, 2017 06:54AM ET
The pair continued falling at the start of this week, opening with a gap down after UK’s Prime Minister Theresa May comments on how she sees the country’s exit from the European Union. The process will likely involve a complete break with the single bloc and a loss of free access to the European market, while the UK will try to sign a new trading agreement.
The dollar, on the other hand, received a significant support on Friday when data on the US labour market showed a healthy increase in average earnings of 0.4% month-on-month. The data allows to assume higher inflation growth in the nearest future and a faster pace of monetary policy tightening by the Fed.
On the daily chart, the pair is approaching a strong support level that it tested few times in October. The RSI is falling having failed its longer MA. The Composite is about to test its longer MA as well.
Support levels: 1.2168 (local lows), 1.2086 (October lows), 1.1890 (record lows).
Resistance levels: 1.2220 (local highs), 1.2269 (local highs), 1.2387 (local highs).
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