Yesterday there were several events that affected both currencies. They helped the pair gain a foothold above the 1.3400 mark and at the moment the pair is trading near the 1.3456 mark.
The data released yesterday on the US economy turned out to be higher than forecasted and GDP growth for the 3rd quarter was 3.3%. However, this data was not enough to offset the delays in the adoption of tax reform, which played a more important role in the decision-making of investors. As a result, the dollar began to decline.
Furthermore, the resumed talks on Brexit, in turn, had a positive impact on the British Pound.
Against the background of the above events, yesterday our pair showed a steady growth and was able to gain a foothold above the mark of 1.3400.
At the moment, our pair is above the Fibo level of 23.8 and overcame the local resistance near the 1.3440 mark. On the chart we see a clear upward impulse, which, after adjusting to the level 38.2, again resumed growth.
So our advice will be to look for points to enter long positions. At the moment the closest level of support is the mark of 1.3440 and you need to look for nearby points to enter the market. In the medium term, we expect the pair to continue its upward movement and rush to target 1.3585. There are local rollbacks near the levels of 1.3490 and 1.3530.
