Current trend

On Thursday, the GBP/USD pair remained at local lows, near the level of 1.5100.

The British currency gained support from the publication of Markit Manufacturing PMI, which in September declined from 51.6 to 51.5 points against the forecast of 51.3 points. The US currency, in its turn, lacked the support from ISM Manufacturing PMI, which in September fell from 51.1 to 50.2, while a decline to 50.6 points was expected.

Support and resistance

Bollinger bands on the daily chart is directed down, while the price range is widening. MACD indicates that a downward movement is likely to continue. Stochastic is in the oversold zone and trying to turn up.

According to the indicators, short positions are still valid, and a possibility of an upward correction should be considered as well.

Support levels: 1.5125, 1.5085, 1.5045, 1.5000 (strong psychological barrier).

Resistance levels: 1.5164, 1.5200, 1.5263, 1.5300, 1.5328, 1.5400, 1. 5457, 1.5528 (22 September local high), 1.5558, 1.5600, 1.5658 (18 September high).

Trading tips

Long positions are preferable and can be opened when the price turns up at the level of 1.5150 with targets at 1.5190, 1.5230 and stop-loss at 1.5120. Validity – 1-2 days.

Short positions can be opened after the breakdown of the level of 1.5110 with the target at 1.5000 and stop-loss at 1.5140. Validity – 2-3 days.

GBP/USD: decline slows down

GBP/USD: decline slows down

The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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