The pair GBP/USD has significantly grown at the previous session due to the negative data on the industrial orders in the USA, which fell by 0.4% in April. During the trading session the Pound has grown by 150 points reaching the weekly highs of 1.5373.
Today, investors are waiting for the US macro-economic statistics on business activity index in the service sector, as per ISM for May and trade balance for April. The forecast for both indices is negative. If the forecast proves to be correct, the pair GBP/USD will continue to rise.
Support and resistance
On the four-hour chart technical indicators show continuation of the uptrend. Bollinger bands are converging, confirming uptrend. MACD histogram is in the negative zone, but its volumes are decreasing and may go to the positive zone soon, demonstrating the increase of activity among buyers.
Resistance levels: 1.5372, 1.5440, 1.5505 and 1.5550.
Support levels: 1.5327, 1.5260, 1.5217 and 1.5173.
If current trend continues, it is advisable to open buy positions from the current level with the nearest target of 1.5440. Breakdown of the level of 1.5440 will open the way to the level of 1.5505. Uptrend is possible after consolidation of the pair below the level of 1.5327. In this case the “bears” will try to drop the pair below 1.5260 and then to 1.5217.