Last week the Pound fell against the Dollar by more than 400 points.
The pair was pressured by the decision from the Bank of England to keep its current interest rate and the Asset Purchase Facility unchanged, while the regulator’s Minutes were primarily in negative tones. In addition, the Pound was pressured by data on the Industrial Production in the UK that came out worse than already poor forecasts. At the same time, the USD was supported by strong data on the US labour market that came out on Friday.
Thus, due to poor macroeconomic statistics from the UK and increased probability of an interest rate hike in the US in December, the pair will continue falling.
Support and resistance
Most likely, the pair will fall to the level of 1.4910 and reverses up within a descending channel after, towards the levels of 1.5250, 1.5190. From these levels, a new downward wave will begin.
Key technical indicators confirm a fall continuation.
MACD is in the negative zone and its volumes are growing. Trending indicators suggest the fall will continue as well.
Support levels: 1.5030, 1.5000, 1.4910, 1.4830, 1.4745, 1.4650, 1.4570.
Resistance levels: 1.5100, 1.5190, 1.5250, 1.5095, 1.5350, 1.5400, 1.5500, 1.5610.
Pending sell orders can be placed at the levels of 1.5150, 1.5190 with targets at 1.4775, 1.4650 and stop-loss at 1.5300.