Yesterday the GBP/USD pair showed mixed dynamics and could not break 1.5200 level.
The latest data on Mortgage Approvals for August from the UK showed the number of approvals grew to 46,743, which is the highest figure for the year and came out a lot better than economists expected. At the same time, New Home Sales for August in the US grew by 5.7% to 552 thousands against the previous figure of 507 thousands, while experts forecasted a 1.6% growth.
Support and resistance
Bollinger Bands on the daily chart is turning down, while the price range is widening. The price, however, is on the bottom MA of the indicator thus suggesting a possibility of an upward correction. MACD is falling. Stochastic is in the oversold zone and trying to turn up thus also suggesting an upward correction in the short-term.
Indicators recommend waiting for clearer trading signals. The main scenario, however, remains the downward movement in the pair.
Support levels: 1.5200 (local low), 1.5164 (4 September low), 1.5125, 1.5085.
Resistance levels: 1.5263 (local high), 1.5300 (24 September high), 1.5328, 1.5400, 1.5475, 1.5528, 1.5558, 1.5600, 1.5659 (18 September high), 1.5700, 1.5722.
Short positions can be opened from the current price with the target at 1.5145 and stop-loss at 1.5290.
Pending buy orders can be placed from the level of 1.5350 with the target at 1.5480 and stop-loss at 1.5300.