The Pound continues growing amid the weakening USD, which is under pressure after the market intervention by the People’s Bank of China aimed at the Yuan devaluation.
The GBP/USD pair grows despite poor labor market statistics from the UK. Average Earnings in June grew by only 2.4%, while experts expected a growth of 2.8%. However, the Claimant Count for July unexpectedly fell by 4.9 thousand, while the figure was forecasted to grow by 1.5 thousand.
Support and resistance
Bollinger Bands on the daily chart represents the beginning of a weak upward movement, while the price range remains narrow. MACD is trying to develop a buy signal. Stochastic keeps rising but is about to reach the overbought zone, which could indicate a possibility of a downward correction.
The indicators recommend to wait for a clearer signal.
Support levels: 1.5600 (local low), 1.5520, 1.5465, 1.5400 (10 July low), 1.5330 (8 July low).
Resistance levels: 1.5659 (12 August high), 1.5700 (beginning of July high), 1.5770, 1.5800 (24 June high).
Open long positions after the price rebound from the level of 1.5600 (with the appropriate indicators signals) with the target at 1.5700 and stop-loss at 1.5520.
Short positions can be opened after the price consolidation below the level of 1.5600 with targets at 1.5520, 1.5500 and stop-loss at 1.5659, 1.5680.