On Thursday, trades the pair GBP/USD was undergoing correction from the level of 1.5500 and during the day the pair managed to reach the level of 1.5303. Throughout the day, the British currency demonstrated steady growth against the USD. Such dynamics was caused by weak data on the U.S economic growth, which forced investors to reconsider their earlier expectations of the increase in the interest rates this year. However, a statement of the US Fed, which was more optimistic than expected, has reassured the market participants. It was said that weakening in the American currency in the winter was caused by the temporary factors. It is assumed that in Q2 the pace of recovery will significantly increase and the USD will continue to strengthen.
Today, some British macro-economic statistics will become known, the most important of them will be business activity index in manufacturing sector. It is projected that the index will slightly grow, which will have a positive impact on the pair GBP/USD.
Among American news attention should be focused on business activity index in the manufacturing sector of the USA for April. It is expected that the index will rise to 52.0 points. The rise of this index exceeds the level of 50 points, it proves manufacturing activity growth.
Support and resistance
Resistance levels: 1.5400 (important psychological level), 1.5500 (highs of 29 April), 1.5552 (highs of 26 April), 1.5620 (highs of 31 December, 2014).
Support levels: 1.5336 (Asian session lows), 1.5280 (Fibonacci retracement of 23.6%), 1.5200 (important psychological level), 1.5140 (Fibonacci retracement of 38.2%) and 1.5000 (important psychological level).
Buy positions to can be opened after breakdown of the level of 1.5400 with the first target of 1.5490 and the next one at 1.5550. Sell positions are recommended at the level of 1.5335 with the targets of 1.5280 and 1.5200.