Yesterday GBP/USD continued to decline due to positive statistics from the USA. Personal spending grew 0.4% in February, against a forecast of 0.3% growth. Pending home sales, one of the crucial US real estate market indicators, increased 3.1% instead of the expected 0.4%. The Pound is still under pressure despite Mark Carney's Friday statement that the interest rate would be revised upwards next time.
Data on UK GDP are to be released today. A year-on-year value of 2.7% will have a positive impact on the Pound and will probably initiate a breakdown of the maximum level at 1.4915. On the other hand, the pair may be supported with statistics for US consumer confidence. The index may drop from 96.4 to 96 points.
Support and resistance
The nearest resistance level is Friday's maximum at 1.4915. The support level coincides with a local low at 1.4700.
Long positions should be opened at 1.4773 with Take Profit at 1.4915 and Stop Loss at 1.4700. The data on the UK and USA must be considered as well: if UK GDP is worse than expected, it's best to close positions and wait for the publication of US consumer confidence.