Employment in the UK fell for the first time in two years. Forecasted decline in Retail Sales for July indicates slow inflation growth that may delay an interest rate increase.
On Tuesday, the data on Retail Sales for July are due in the UK, and on Wednesday, Unemployment Level data is out.
The number of new jobs created in the US amounted to 215 K, which is slightly lower than forecasted 223 K. The US economy shows confident signs of growth unlike other biggest world economies.
Thus, in the medium-term the GBP/USD pair is going to keep falling.
Support and resistance
The pair broke down the zone of strong support levels at 1.5600 (Fibonacci 38.2%), 1.5550 (ЕМА200), 1.5485 (ЕМА144 on the daily chart).
OsMA and Stochastic on the 4-hour and daily charts give sell signals.
The year low at 1.4600 can become the aim of a farther fall.
Support levels: 1.5425, 1.5350, 1.5230, 1.5100, 1.5000.
Resistance levels: 1.5550, 1.5600, 1.5650, 1.5775.
Open short positions from the current levels and from 1.5500, 1.5530, 1.5550 with targets at 1.5425, 1.5350, 1.5230, 1.5100, 1.5000 and stop-loss at 1.5580.
Long positions can be opened after the breakout of the level of 1.5600 with targets at 1.5650, 1.5700, 1.5775, 1.5900.