As markets are waiting for the Bank of England meeting tomorrow and its Interest Rate decision, the volatility in the pair is low.
The pair is under pressure amid expectations of the Bank of England Minutes and positive macroeconomic data from the US.
Today attention needs to be paid to the ADP Employment Change for October in the US that tends to affect the market dynamics, as it perceived as the leading indicator to important NFPR data, due on Friday. In addition, pay attention to the Markit Services PMI for October and Fed’s Yellen testifies later in the day.
Support and resistance
As long as the pair remains below key resistance levels at 1.5425 (ЕМА144), 1.5470 (ЕМА200 on the daily chart), short positions look preferable.
A breakdown of the level of 1.5385 (ЕМА50 on the daily chart) would send the pair inside a descending channel on the daily chart between the levels of 1.5000-1.5385 and towards 1.5385, 1.5310, 1.5270, 1.5230 (23.6% Fibonacci correction), 1.5170, 1.5130, 1.5110, 1.5000.
At the same time, a breakout of the level of 1.5470 (ЕМА200) could send the pair towards 1.5600 (38.2% Fibonacci correction), 1.5750 (ЕМА144 on the weekly chart), 1.5900 (ЕМА200 and 50% correction).
On the 4-hour chart, OsMA and Stochastic recommend long positions, while on the daily chart they turn to sales.
Support levels: 1.5385, 1.5300, 1.5270, 1.5230.
Resistance levels: 1.5425, 1.5470, 1.5500.
Short positions can be opened after the breakdown of the level of 1.5400 with targets at 1.5330, 1.5260 and stop-loss at 1.5440.
Long positions can be opened above the level of 1.5450 with targets at 1.5500, 1.5580 and stop-loss at 1.5420.