Last week, the GBP/USD pair was growing amid favorable UK labour market statistics and negative US Retail Sales indicator and key indices. At the same time, the British pound remains under pressure from a decline in UK government bonds yields.
Today, due to the lack of important macroeconomic releases both from the US and the UK, no high volatility in the GBP/USD pair is expected.
Support and resistance
The pair rebounded from the key support level of 1.5030 and gained more than 200 points in several days. On Friday, the pair closed at 1.5230. Today, the price is declining slightly and tends to remain close to the level of 1.5190.
During five months, the price has been trading in a wide downward channel, which has started to narrow down gradually.
Technical indicators suggest a downward trend in the pair. MACD indicates growing volumes of short positions. Moreover, according to trend indicators, downward movement is getting stronger. Amid favorable UK statistics, an upward correction to the levels of 1.5295, 1.5350 is possible after which a decline is likely to resume.
Support levels: 1.5190, 1.5100, 1.5030, 1.5000, 1.4910, 1.4830, 1.4745.
Resistance levels: 1.5250, 1.5290, 1.5350, 1.5400, 1.5500, 1.5610, 1.5675, 1.5675, 1.5750.
Open short positions from the current level or place pending sell orders at 1.5295. Target levels are 1.4910, 1.4830 and stop-loss should be set at 1.5415.