Free signal alert for GBPUSD 2014/02/24
GBPUSD made an attempt to build the success of the previous week, but to no avail. Noting the highest point at 1.6820, prices headed down, reaching 1.6635 at the close. But there were reasons for the drop of the pound. The data on the consumer price index was the first disappointment. Figure the first time since November 2009 was below the target level of the Bank of England. In January CPI fell to 1.9% year on year. Labor market data has not pleased the market. The unemployment rate rose to 7.2% from 7.1% previously. Extremely weak and helpful report on retail sales was in January (-1.5% m/m, 4.3% y/y vs. 2.5% m/m, 5.3% y/y). Minutes of the last meeting of the Monetary Policy Committee has not brought anything interesting. The decision to keep it unchanged turned unanimous.
After reaching a new high at 1.6820 GBPUSD pair came under pressure amid profit taking short-term players. As a result, the pair gradually decreased until it found support just above 1.6600 level. Top fluctuations were limited to resistance at 1.6735. The demand for the pound above the 1.6600 mark is saved. This is a positive factor for it and if this level is able to hold off the bears, we should expect growth to 1.6725. Break of the latter will lead to a testing level of 1.6800. The loss of 1.6600 level will open the way to 1.6500.
We recommend a CALL option from 1.66239 with an END OF DAY expiration.