Brent: review
Current trend
Despite the fact that commercial oil reserves in the USA decreased by 5.6 million barrels for the first time over 10 weeks, Brent rate has declined. The meeting of OPEC countries has had more significant impact on the quotes of Brent. At the last meeting, which was held on Wednesday, 4 December, participants decided to leave production quotas unchanged at the level of 30 million barrels per day. This decision was based on the fact that prices in the commodity market are at the optimum level for all parties. Market has declined in response to this news, which prevented consolidation of the instrument near resistance level of 113.00.
Support and resistance
Resistance levels will be the local highs, which the price has tested twice during the week (112.10 and 113.00). Support to the “black gold” will be provided by the recent lows of 110.70 and 110.00.
Trading tips
It is advisable to open long positions with the target of 113.00, following breakdown of the level of 112.10. Pending sell orders can be placed below the level of 110.70.
Vadim Smarzh
Analyst of LiteForex Group of Companies
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GBP/USD: analysis and forecast
Current trend
On Thursday the currency pair GBP/USD weakened and reached weekly lows of 1.6296. In his yesterday’s speech before the Parliament, British Finance Minister George Osborne said that economic redevelopment has not been completed yet. He nevertheless raised GDP growth forecast to 1.4% for this year and to 2.4% for the next year. However, investors did not share optimism of the Minister and the Pound continued to decline. On the other hand, the USD was supported by positive statistics. According to preliminary data, US GDP can amount to 3.6%, which is higher than the forecast by 0.6%
Support and resistance
At the moment the pair is trading at the level of 1.6330. It is not expected that it will go below the level 1.6300 in the near future. Investors will not take risk before the news from American labour market will become known. However, if the number of new jobs outside agricultural sector rises again, quotes can fall to the levels of 1.6280 and 1.6230 or even up to 1.6290.
On the four-hour chart technical indicators give mixed signals. Bollinger bands are directed downward; bottom line of the indicator provides support to the price chart. MACD histogram has moved to the negative zone, forming a sell signal. Stochastic lines, on the contrary, are rising.
Trading tips
In the current situation it makes sense to open short positions from the level of 1.6300 with the target of 1.6230. If the price reaches the level of 1.5360, it is advisable to open long positions with the target of 1.6430
Dmitry Zolotov
Analyst of LiteForex Group of Companies
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