On Wednesday, the GBP/USD pair managed to gain back some of its losses, having risen from local lows. Traders continue taking profit on USD long positions, despite the USD is getting significant support from macroeconomic data.
Thus, the US released very strong Durable Goods Orders statistics. After a 0.8% decline in the previous month, the indicator grew by 3.0% in October that is twice as much as analysts expected.
The GBP, in its turn, managed to strengthen as UK GDP growth forecast for 2016 was revised up to 2.4%. Moreover, the British currency was supported by Mortgage Approvals statistics which indicated a growth from 44.825K to 45.437K in October.
Support and resistance
Bollinger Bands indicator on the daily chart is directed horizontally, while the price range remains almost unchanged. MACD is hesitating to grow and still keeping its sell signal. Stochastic is in the oversold zone and trying to turn up.
It is recommended to wait for clearer trading signals.
Support levels: 1.5085, 1.5053 (24 November low), 1.5026 (6 November low), 1.5000 (strong psychological level).
Resistance levels: 1.5125, 1.5154, 1.5200, 1.5245, 1.5264, 1.5300, 1.5335 (19 November high), 1.5400.
Long positions can be opened after the breakout of the level of 1.5154 with the target at 1.5260 and stop-loss at 1.5085. Validity – 2-3 days.
However, continuation of downward movement seems to be a likelier scenario. Short positions can be opened from the level of 1.5090 with the target at 1.5030 and stop-loss at 1.5120.