On Monday, the British Pound has weakened against the USD amid expectations of the interest rate increase in the USA over the next couple of months. In addition, the USD has grown against the currency basket despite the reduction of the US GDP by 0.7% in Q1, while analysts expected the decline of 0.8%.
Business activity index in the manufacturing sector ISM for May has grown up to the level of 52.8 points, against the previous value of 51.5 points.
On Friday, the American key macroeconomic indices will be released, including unemployment rate (which has been constantly declining in the past few years). On Thursday, the Bank of England will announce interest rate decision (which is likely to be left unchanged at the previous level of 0.5%).
Support and resistance
The nearest resistance level is the moving average line with the period 90 (1.5275). Support level is 1.5100 (important support level of the previous month).
This week, the Pound will try to reach the level of 1.5100. However, it seems not feasible for the GBP to break out this level and go further down. It is recommended to open short positions from the level of 1.5212, with stop-loss at the level of 1.5275 and the target of 1.5100.