GBP continues falling against USD. Sales of the British currency were caused by weak macroeconomic data.
Housing Prices index amounted to 2% YoY, which is better than the forecast of 1.7% but is significantly worse than the value in the previous month. Consumer Confidence index remained unchanged at the level of 10.7 points. The monetary policy of the British regulator does not add optimism as well: the interest rate remained unchanged at the level of 0.5%. The asset repurchase program also remained at the same level (435 billion pounds).
Experts believe that the UK economy still needs support through monetary stimulus. For example, GDP in Q1 2018 grew only by 0.1% showing a minimum increase since 2012. Let's not forget about Brexit and the uncertainty associated with this process.
Tomorrow traders will focus on the data on GDP, current account and changes in consumer credit in the UK.
Support and resistance
Stochastic is at the level of 15 points and indicates the possible correction.
Resistance levels: 1.3121, 1.3183.
Support levels: 1.3061, 1.3005.
Short positions may be opened from the level of 1.3121 with take-profit at 1.3061 and stop-loss at 1.3183.
Great Britan vs US Dollar
|Support levels||1.3005, 1.3061, 1.3121, 1.3183|
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