Today, the GBP/USD pair was growing but then corrected down to the level of 1.4455 amid mixed macroeconomic data, released in the UK.
Core Consumer Price Index came in below the forecast at 1.2%. Consumer Price Index grew by 0.1% to 0.3% in annual terms and fell to -0.8% on a monthly basis. Retail Price Index shrank to 1.3% in annual terms, Producer Price Index – Output was down to -1.0% while Producer Price Index – Input exceeded the forecast and came in at -7.6%.
Data on NAHB Housing Market Index, due in the US today, might influence dynamics in the pair. A growth in the indicator would strengthen the US Dollar while a decline, on the contrary, might affect the US currency.
Support and resistance
On the 4-hour chart, the pair is trading in the area of the middle MA of Bollinger Bands. MA50, MA100 and MA144 are above the current price and directed horizontally. MACD histogram is near the zero line; its volumes are insignificant and remain almost unchanged. ADX indicates a decline in the pair. The DI lines are crossing each other and moving down.
Support levels: 1.4419, 1.4391, 1.4351, 1.4332, 1.4291, 1.4267, 1.4143, 1.4211, 1.4149.
Resistance levels: 1.4447, 1.4499, 1.4522, 1.4544, 1.4567, 1.4640, 1.4668, 1.4691.
Long positions can be opened from the level of 1.4477 with targets at 1.4499, 1.4522 and stop-loss at 1.4455.
Short positions can be opened from the level of 1.4400 with targets at 1.4375, 1.4350 and stop-loss at 1.4420.
Validity – 2-3 days.