Current trend 

Demand for pounds remains low and the pair is trading at 5-year lows despite negative statistics for the US labour market. There has been a decrease of 0.18 million in laying new house foundations, thus a forecast of 1.05 million has not proved true. 

Besides, the pound remains under pressure since Bank of England's interest rates are kept at the same level for a longer-than-planned period. The key macroeconomic event today is the Monetary Policy Committee's vote on interest rates. Besides, investors' attention is focused on the FED's upcoming statement.  The American regulator will announce the decision on the dates of change in interest rates.  Claimant Count Change promises to decrease by 8000, whereas the unemployment rate may fall by 0.1%.

Support and resistance

A M80 moving average (1.4805) is the nearest resistance level. Last week's low at 1.4700 serves as support.

Trading tips 

Long positions should be opened from a level of 1.4760 and closed at about 1.4800 prior to publication of news. Afterwards, act in accordance with Bank of England's minutes but remember about an upcoming decision on FED's interest rates that will put strong pressure on the market.

GBP/USD: general review




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