In the beginning of the week, the pair significantly declined despite poor macroeconomic statistics from the US. The pair was pressured by data on Manufacturing Production in the UK that came out substantially worse than forecasts and the previous figure.
This week, attention needs to be paid to data on Retail Sales and Initial Jobless Claims in the US, and the Bank of England Interest Rate Decision and its Asset Purchase Facility. In addition, extra attention needs to be paid to the Bank of England Minutes that will contain detailed information on current economic conditions in the UK and might add to pressure on the Pound if include negative commentaries.
Support and resistance
The pair is moving along a descending narrowing channel and will continue the downward trend in the medium term.
MACD’s histogram is in the negative zone and its volumes are growing.
Support levels: 1.4990, 1.4900, 1.4810, 1.4740, 1.4635, 1.4570, 1.4450.
Resistance levels: 1.5000, 1.5100, 1.5250, 1.5295, 1.5350, 1.5500, 1.5610, 1.5675, 1.5750.
Pending sell orders can be placed at the level of 1.5100 with the target at 1.4570 and stop-loss at 1.5310.