Yesterday the GBP/USD pair fell.
The pair was pressured by poor data on Manufacturing Production for October that came out in the UK yesterday and the figure was than forecasts. Furthermore, the pair is under pressure amid tomorrow’s Bank of England meeting where the regulator will decide on it monetary policy.
At the same time, weak macroeconomic statistics and near-zero inflation and GDP growth in the UK shift the expectations of an interest rate hike in the country towards the second half of 2016.
Thus in the medium term the pair will remain under pressure.
Support and resistance
Today the pair is in an upward correction towards the resistance level at 1.5060 (ЕМА50 on the 4-hour chart), a breakout of which would send to price to 1.5100 (upper border of the descending channel on the 4-hour chart), 1.5125 (ЕМА144), 1.5160 (ЕМА200). As long as the price remains below the level of 1.5230 (23.6% Fibonacci correction), the downward trend will continue.
At the same time, a breakdown of the support level at 1.5000 would send the pair towards 1.4900, 1.4600 (year lows).
On the 4-hour chart, OsMA and Stochastic recommend purchases.
Support levels: 1.5000, 1.4900.
Resistance levels: 1.5060, 1.5100, 1.5125, 1.5160, 1.5200, 1.5230.
Long positions can be opened above the level of 1.5060 with targets at 1.5130, 1.5170 and stop-loss at 1.5030.
Short positions can be opened below the level of 1.5000 with targets at 1.4960, 1.4920 and stop-loss at 1.5040.