On Thursday, the pair strengthened after the publication of UK’s data from and the Fed meeting results.
The American regulator kept its interest rate unchanged at 0.25% but stressed that rates increase is possible at the next meeting. At the same time, data on the BoE Consumer Credit form the UK showed a significantly lower fall than was forecasted by experts.
In addition, the USD was pressured by poor GDP data for the third quarter from the US. According to preliminary statistics, the US economy grew by 1.5% instead of forecasted 1.6%.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally, while the price range remain quite wide. MACD is near the zero line and trying to turn up. Stochastic is growing and leaving the oversold zone.
The indicators recommend long positions.
Support levels: 1.5300, 1.5275, 1.5242 (local low), 1.5200 (13 October low), 1.5164, 1.5125, 1.5085.
Resistance levels: 1.5347 (local high), 1.5400, 1.5440, 1.5475, 1.5508 (22 October high), 1.5528, 1.5600, 1.5658 (18 September high).
Long positions can be opened after the price consolidation above the level of 1.5350 with targets at 1.5440, 1.5500 and stop-loss at 1.5310. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 1.5255 with targets at 1.5140, 1.5100 and stop-loss at 1.5290. Validity – 2-3 days.