Throughout three weeks the pair has traded in the range of 1.4750-1.5000, trying to exceed the limits. The upper limit of the channel coincides with Fibonacci retracement of 38.2%, which is unlikely to let the price go further up. Since the beginning of this week the pair GBP/USD has been trying to go up; however these attempts have not been successful. At the moment the pair is testing the lower limit of the channel.
Today, British Monetary Policy Committee will make its declaration and the Bank of England will make decisions on the interest rate and the volume of assets buyout. These releases are likely to provide support to the British currency, given that British economy has been regaining recently; however economic growth rate might not be sufficient for the trend reversal.
Support and resistance
Technically, indicators show further decline; however, in the near future MACD can give a sell signal.
Resistance levels: 1.4810, 1.4845, 1.4900, 1.4950 and 1.5000. The main target of the “bulls” is to return above the level of 1.4845, and then to go up to 1.5000. Support levels: 1.4785, 1.4750, 1.4720 and 1.4670.
Long positions are recommended from the levels of 1.4845 and 1.4900, with the main target of 1.5000. Sell orders can be placed below the 1.4785 with the target of 1.4670.