The GBP/USD pair continues falling. Yesterday, amid weak data on inflation in the UK, the pair reached the level of 1.4275. Consumer Price Index was down by 0.8% while analysts expected an increase by 0.1%. Last month’s indicator was also negative and came in at -0.7%.
Today, future dynamics in the pair might be determined by data on Producer Price Index. According to the forecast, the indicator will remain unchanged. However, in case of a growth, the USD might strengthen as investors would have more grounds for expecting a hike in US interest rates. Moreover, attention needs to be paid to statistics on Industrial Production.
Support and resistance
At present, selling pressure in the pair is quite strong. A Pin-bar pattern has been formed on the 4-hour chart that suggests a correction in the pair.
Support levels: 1.4300, 1.4240, 1.4200, 1.4150.
Resistance levels: 1.4346, 1.4410, 1.4500.
Sell-limit orders can be placed at the level of 1.4346 with targets at 1.4300 and 1.4240. Short positions can also be opened from the level of 1.4290 with targets at 1.4240 and 1.4200.
It does not seem to be the right time to enter long positions.