At the beginning of this week, the pair continues falling as it remains under pressure after the Fed Interest Rate Decision.
In addition, the pair is pressured by Bank of England loose monetary policy. As was stated by one of the regulator’s officials yesterday, further worsening of commodities markets conditions and negative tendencies on the labour market in the UK could move away the dates of monetary policy tightening in the country.
Due to Christmas holidays market volatility remains low.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. MACD is slowing its fall still giving a sell signal. Stochastic is in the oversold zone and trying to turn up indicating a possibility of an upward correction.
The indicators recommend considering short positions.
Support levels: 1.4864 (17 December low), 1.4835, 1.4800 (15 April low).
Resistance levels: 1.4894 (local high), 1.4922, 1.4956, 1.5000 (psychologically important level), 1.5026, 1.5053, 1.5085, 1.5125.
Open short positions from current levels with the target at 1.4800 and stop-loss at 1.4915.
Long positions can be opened after the breakout of the level of 1.4960 with the target at 1.5050 and stop-loss at 1.4920. Validity – 2-4 days.