Januari 10, 2014 - Brent: general analysis | GBP/USD: general analysis

Brent: general analysis Current trend The price of crude oil Brent has been falling since the beginning of this year. If international sanctions against Iran have been lifted, black gold will drop in price even further. Additional pressure on the Brent rate was caused by the US data on the increase in gasoline stocks by 6.2 billion barrels and the rise in the inventories of distillates by 5.8 billion barrels. One the reasons of the increase of fuel reserves is associated with the bad weather, which led to the cancellation of most international flights and abandoning of using personal vehicles. At the same time oil quotes were supported by tense situation in Libya, where Energy Minister threatens to stop supplies if foreign companies do not stop buying oil from the rebels at the below market price. Price dumping can lead to the reduction of oil production and interruption of delivery, which will add confidence to the “bulls” at the commodity market. Support and resistance The instrument continues to trade in the downtrend. Quotes of Brent have reached the bottom limit of the trading channel at the level of 106.16. The nearest support level is 108.17 Trading tips Short positions are recommended after breakdown of support level of 106.00 with protective order at 106.30 and a target of 105.25. Dmitry Agurbash Analyst of LiteForex Group of Companies --------------------------------------- GBP/USD: general analysis Current trend It became known yesterday that the Bank of England left interest rate unchanged at the level of 0.5%. Volume of bond repurchase program was also kept at the previous level of 375 billion pounds per month. Experts believe that the Bank of England intends to maintain the volume of incentive program until 2016. However, US Fed is planning to change monetary policy in the near future, thereby increasing demand for the American currency. Support and resistance On the H4 chart the pair GBP/USD has reached the upper limit of the trading channel at the level of 1.6489. Later the pair can reach resistance level of 1.6500, where there many stop-losses. If the price manages to break down this level, the pair will grow to the level of 1.6606. Possibility of growth is confirmed by the fact that the pair is trading above the moving average with the period 200 (1.6337), which is a strong support level. Trading tips It is recommended to open long positions after breakdown of resistance level of 1.6500 with stop-loss near 1.6450 and a target of 1.6620. Dmitry Agurbash Analysts of LiteForex Group of Companies