The British Pound against the US Dollar declined to the level of 1.5000, having lost more than 200 points since the beginning of the week. The pair is under pressure from growing demand for the American currency and negative macroeconomic statistics, released in the UK. On Tuesday, UK key indices were down; moreover, weak labor market data has been released today.
The most important news of the trading day is the publication of the Fed Interest Rate Decision. At the same time, attention needs to be paid to Industrial Production and housing market statistics, due in the US as well.
Support and resistance
The GBP/USD pair continues trading within a narrowing downward channel. It should be noted that a rate hike has already been priced into the market to a certain extent; therefore, the pair is unlikely to fall sharply. Otherwise, if the Regulator postpones tightening of monetary policy, the US Dollar would come under significant pressure.
In the medium term, the pair tends to continue declining towards 1.4570 (mid-April low).
Technical indicators confirm this scenario. MACD indicates growing volumes of short positions. The price broke down the middle MA of Bollinger Bands and is declining towards the lower border - 1.4950, 1.4900.
Support levels: 1.5000, 1.4950, 1.4900, 1.4810, 1.4740, 1.4635, 1.4570, 1.4450.
Resistance levels: 1.5055, 1.5100, 1.5130, 1.5190, 1.5225, 1.5250, 1.5295, 1.5350.
Short positions can be opened from the levels of 1.5100, 1.5130 with targets at 1.4950, 1.4900 and 1.4570 for the medium term, and stop-loss at 1.5215.