Since the middle of the month, the pair significantly fell and lost more than 400 points as it was pressured by the Fed decision on interest rates.
At the same time, this week the US Dollar is in correction to most of the major currencies. However, the pair continued falling that could indicate a weakness of the Pound.
Yesterday’s final GDP data for the third quarter of the year from the UK came out worse than forecasts and preliminary figures, which, however, strengthened the pair and gave it an upward impulse that continues today.
Today attention needs to be paid to data on Initial Jobless Claims in the US. Market volatility is going to be low.
Support and resistance
The pair is moving along a descending channel and remains near its bottom border.
An upward correction in the pair can continue up to the levels of 1.5000, 1.5060, 1.5100. The downward trend, however, will prevail.
Technical indicators suggest a fall continuation.
MACD’s histogram is in the negative zone and its volumes significantly increased. Ichimoku and Bollinger Bands indicate a fixation of the downward trend.
Support levels: 1.4900, 1.4815, 1.4740, 1.4635, 1.4570, 1.4450, 1.4390.
Resistance levels: 1.4950, 1.5000, 1.5060, 1.5100, 1.5130, 1.5190, 1.5225, 1.5295, 1.5350.
Pending sell orders can be placed from the levels of 1.5060, 1.5100 with targets at 1.4635, 1.4570 and stop-loss at 1.5160.