The GBP rate continued to fall against the American currency last week. The GBP/USD dropped by more than 100 points on Friday, despite the unconvincing statistics from the USA released afternoons. Thus, February's producer price index demonstrated negative dynamics in contrary to growth forecasts.
Today, 16th of March, investors will be focused on statistics for manufacturing production and capacity utilization in the USA (15:15 GMT+2).
Support and resistance
The MACD histogram is in the negative zone on H4 chart. Its volumes are reducing, pointing to a decrease in sellers' activity and a probable rate growth. Bollinger Bands are indicating that the downtrend will continue. However, there can be a correctional movement up to a level of 1.4850. A rate growth may finally take place due to technical correction after the protracted decline.
Resistance levels: 1.4780, 1.4850, 1.4900.
Support levels: 1.4730, 1.4700, 1.4650, 1.4600.
Long positions may be opened from the current levels with the nearest target at 1.4850. A clear breakdown of the level 1.4850 will suggest the development of an uptrend. Buyers’ next target would be the level of 1.4900. A new surge in sellers' activity may be expected once the support level of 1.4700 is broken down. If so, quotes may drop to the levels 1.4650 and 1.4600.