UK’s Treasury will publish its Autumn Forecast Statement for the next year today at 2:30 pm (GMT+2).
The last statement was released in June and predicted the third quarter GDP growth of 0.6%, when the actual growth came out at 0.5%. Therefore, slowing rates of inflation and GDP growth will delay the monetary policy tightening cycle in the UK.
A bloc of important news is going to be published today in the US, which if data comes out strong could weaken the pair.
Support and resistance
On the daily chart, the pair is moving along a descending channel with the lower border near the level of 1.5000, a breakdown of which would send the pair towards 1.4600.
A short-term correction to the level of 1.5230 (23.6% Fibonacci correction) is possible. However, while the price remains below the levels of 1.5400 (ЕМА200, ЕМА144 and upper border of the descending channel) and 1.5280 (ЕМА50) the downward trend will continue.
On the 4-hour, daily, weekly and monthly charts, OsMA and Stochastic recommend sales.
Support levels: 1.5040, 1.5000, 1.4900.
Resistance levels: 1.5110, 1.5230, 1.5280, 1.5400.
Short positions can be opened below the level of 1.5050 with targets at 1.4970, 1.4890 and stop-loss at 1.5080.
Long positions can be opened above the level of 1.5140 with targets at 1.5190, 1.5240 and stop-loss at 1.5110.