This week, the price of the pair GBP/USD was smoothly growing until on Wednesday the rise in price stopped at the resistance level of 1.5255 (Fibonacci retracement of 23.6%) failing to overcome this level.
Today, the market is uncertain because investors are waiting for the outcome of the parliamentary election in the UK, as the election results can significantly influence the fate of European Union. Current Prime Minister and the leader of the Conservative Party David Cameron, has promised that if he wins the election, a referendum on the membership of the UK in the EU will be held in Britain. The worst situation for the Pound will be the uncertainty in case neither of the parties wins the election and the government will not be formed immediately.
Support and resistance
From the technical point of view the price has rebounded from the level of 1.5255 (Fibonacci retracement of 23.6%) and is moving to the level of 1.5175 (moving average of Bollinger bands) It is likely that during the day the pair will continue to trade in the specified range.
Technical indicators show the rise in quotes. Bollinger bands are turning upwards. MACD histogram is ready to move to the positive zone and form a buy signal. Stochastic lines have turned downwards.
Support levels: 1.5175, 1.5090 and 1.5025.
Resistance levels: 1.5255, 1.5350 and 1.5455.
In the current situation long positions with the targets of 1.5350 and 1.5455 can be opened if the price breaks down the level of 1.5255. Short positions are advisable after consolidation of the price below the level of 1.5175 with the target of 1.5090.