On Tuesday, the British currency was declining, being under pressure from weak inflation statistics, released in the UK.
In September, Consumer Price Index declined unexpectedly by 0.1% on an annual basis, while no change was expected. On a monthly basis, the indicator also declined by 0.1% against a 0.2% growth in the previous month.
Retail and House Prices for September were disappointing as well. After a 0.5% growth in August, Retail Price Index declined by 0.1% against an expected increase by 0.1%. House Prices grew by 5.2%, which is below the forecast of 5.5%.
Support and resistance
Bollinger Bands indicator on the daily chart keeps moving slightly up, while the price range has almost stopped widening. MACD is trying to turn down and keeping a sell signal. Stochastic is moving away from the border of the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.5260, 1.5200 (13 October current local low), 1.5164, 1.5125, 1.5085 (near May lows), 1.5045, 1.5000 (strong psychological level).
Resistance levels: 1.5300, 1.5327, 1.5400 (near 9 and 13 October current local highs), 1.5475, 1.5528, 1.5558, 1.5600, 1.5658 (18 September high), 1.5700.
Long positions can be opened after the breakout of the level of 1.5320 with targets at 1.5385, 1.5400 and stop-loss at 1.5300. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 1.5290 with targets at 1.5245, 1.5220 and stop-loss at 1.5310. Validity – 2-3 days.