Last Friday, the Pound grew against the USD despite better than expected data on the producer price index in the US. The wholesale price change index gained 0.5%, while was expected to grow by 0.4%, and the previous figure was -0.4%. Furthermore, Reuters/Michigan consumer sentiment index was forecasted to grow to 91.5 with the previous figure being 90.7, while actually reached 94.6.
Today, the US industrial production data is published and is expected to present a gain of 0.2% against last month fall of 0.3%. Therefore, high volatility is not expected as investors are waiting for tomorrow’s Bank of England meeting and the US Fed interest rate decision.
Support and resistance
The nearest resistance level: 1.5596 (last week’s low). Support level is the local low of 1.5446 and the level of 1.5528 (moving average with the period of 20).
Likely, today the Pound will correct upward movement of the previous week, so it is advisable to open sell positions from the level of 1.5525 with target at 1.5446 and stop-loss at 1.5596.