There has been a significant decline in trading activity due to Christmas and New Year holidays. During last week, the GBP/USD pair was slightly strengthening despite negative UK GDP and favorable US labor market releases. Since the opening of the trading day, the price has been consolidating in a narrow sideways range 1.4930-1.4910. Today is a bank holiday in the UK.
Support and resistance
The pair remains within a downward channel and is likely to close the trading year near the current levels. Last week, the price reached the lower border of the range 1.4810, rebounded from it and started moving up to the upper border 1.5060, 1.5000.
Technical indicators confirm the price tends to consolidate in the downward channel. MACD indicates growing volumes of short positions. In the medium term, the British currency will not gain any support from fundamental factors; therefore, a likelier scenario is a decline to 1.4570 (local low).
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.
Short positions can be opened from the levels of 1.5060, 1.5000 with targets at 1.4635, 1.4570 and stop-loss at 1.5090.