Since the beginning of the week, the GBP/USD pair is falling as it corrected from its local lows near the level of 1.5000.
Investors are not in hurry to open new positions prior to publications of key statistics on the Consumer Price Indices from the US and the UK. Experts are not expecting strong data from the UK that will support the Bank of England with its decision to delay monetary policy tightening for some time. At the same time, inflation figure in the US should come out slightly stronger than in the UK that will raise expectations of an interest rate hike in the US at Fed’s December meeting.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is widening. MACD is turning down again and ready to form a sell signal. Stochastic turned down near the overbought zone.
The indicators recommend considering short positions.
Support levels: 1.5171 (12 November low), 1.5125, 1.5085, 1.5045 (6 November lows), 1.5000 (psychologically important level).
Resistance levels: 1.5200 (local high), 1.5245(12 November high), 1.5264 (13 November high), 1.5300, 1.5347, 1.5400, 1.5440.
Open short positions from the level of 1.5155 with the target at 1.5070 and stop-loss at 1.5204.
Long positions can be opened from the level of 1.5275 with the target at 1.5380 and stop-loss at 1.5225.