Yesterday the pair significantly grew amid poor macroeconomic statistics from the US. The services PMI’s came out substantially worse than forecasts which strengthened the pair by more than 200 points.
At the same time, inflation and the pace of economic growth in the UK remain very low, which is likely to force the Bank of England to keep its monetary policy loose. Therefore, in the medium-term the pair will remain under pressure due to the lack of strong factors that could support the Pound.
Today attention needs to be paid to BOE Governor Carney speech and labour market data from the US.
Support and resistance
In the medium-term, the pair is expected to fall to the levels of 1.4500, 1.4450, from where the growth towards 1.4725, 1.4775 will resume and the price will consolidate between the levels of 1.4725 and 1.4500.
On the daily chart, the price rebounded from the upper MA of Bollinger Bands and falling. MACD histogram is in the negative zone and its volumes are growing.
Technical indicators suggest a fall in the price.
Support levels: 1.4575, 1.4500, 1.4450, 1.4400, 1.4385, 1.4360, 1.4310, 1.4230, 1.4175.
Resistance levels: 1.4660, 1.4725, 1.4775, 1.4815, 1.4900, 1.4950, 1.5000.
Pending sell orders can be placed at the levels of 1.4775, 1.4815 with the target at 1.4500 and stop-loss at 1.4930.