The USD is recovering its losses after the Chinese central bank market intervention last Wednesday.
Before the Fed decision on the interest rates that is due in September, the GBP/USD pair is likely to continue trading within the range between 1.5700 and 1.5400.
Today, important data on the Price indices for July is due in the UK. Also, pay attention to important publications from the US, which include today’s data on the construction sector for July, Consumer Price indices for July on Wednesday, and the CB leading indicators and FOMC Minutes, due on Thursday.
Support and resistance
The GBP/USD pair has failed to break out of the range 1.5690-1.5425, where it has been trading since July. The middle zone of the range is the area between 1.5600 and 1.5500.
OsMA and Stochastic on the 4-hour and daily charts give sell signals.
Support levels: 1.5550 (ЕМА200, ЕМА50 on the daily chart), 1.5500 (ЕМА144 on the daily chart), 1.5425, 1.5350, 1.5230 (23.6% Fibonacci).
Resistance levels: 1.5600 (38.2% Fibonacci), 1.5650, 1.5690, 1.5775.
Open short positions from the current levels and from 1.5580, 1.5570, 1.5550 with targets at 1.5520, 1.5500, 1.5425, 1.5350 and stop-loss at 1.5620.
Long positions can be opened after the breakout of the level of 1.5600 with targets at 1.5650, 1.5700.