The GBP/USD pair has been declining for two weeks already. Amid negative UK data, favorable US labor market statistics, growing demand for the USD, the price broke down the key support level of 1.5450.
This week, a slowdown of the UK economy was confirmed by PMI data. All these factors affect the national currency. At the same time, despite of the controversial US statistics, the USD index gained more than 1%.
Special attention should be paid to the forthcoming publication of the US labor market statistics. If the actual data complies with the favorable forecast, the American currency will gain additional support.
Support and resistance
The price reached the lower border of the downward channel. In this situation, it will either slowly strengthen, or breaks down the lower border and declines to 1.5095, 1.4900.
Support levels: 1.5230, 1.5180, 1.5095, 1.4900, 1.4750, 1.4715.
Resistance levels: 1.5335, 1.5450, 1.5500, 1.5550, 1.5705, 1.5800, 1.5870, 1.5935, 1.6000.
After the breakdown of the level of 1.5230, place pending sell orders at 1.5160 with the target at 1.4900 and stop-loss at 1.5270.
Open long positions from the current level with the target at 1.5550 and stop-loss at 1.5210.