Yesterday the pair significantly fell amid the publication of poor data in the UK that came out substantially worse than forecasts. Industrial Production shrank by 0.4%, while Manufacturing Production fell by 1.7%.
In addition, the pair was pressured by Fed Chair Janet Yellen testimony before the US Congress. The regulator’s stance on monetary policy tightening remained unchanged and the pace of interest rate hikes will depend on the conditions of the world financial markets and the US economy.
Support and resistance
On the 4-hour chart, moving averages with 50, 100 and 144 periods remain above the price and directed horizontally. MACD histogram is near the zero line and its volumes are insignificant. ADX indicates a fall, while DI lines move in opposite directions.
Support levels: 1.4415, 1.4378, 1.4334, 1.4287, 1.4244, 1.4209, 1.4182, 1.4149.
Resistance levels: 1.4438, 1.4471, 1.4499, 1.4544, 1.4567, 1.4599, 1.4640, 1.4668, 1.4691.
Short positions can be opened from the level of 1.4390 with the target at 1.4350 and stop-loss at 1.4415. Validity – 1 day.
Long positions can be opened from the level of 1.4438 with targets at 1.4471, 1.4499 and stop-loss at 1.4415. Validity – 1 day.