Yesterday the pair strengthened after a substantial fall of the beginning of the week.
The Pound was supported by expectations of the positive outcome of the European Council meeting where details of the UK membership in the European Union are discussed.
At the same time, the pair was pressured by strong data from the US. Initial Jobless Claims for the previous week fell from 269 to 262 thousands, while economists predicted a growth to 275 thousands. In addition, the Philadelphia Fed Manufacturing Survey grew from -3.5 to -2.8 points that was also better than expectations.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range remains unchanged. MACD continues falling. Stochastic reached the oversold zone and trying to turn sideways.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.4350 (local low), 1.4300, 1.4234 (17 February low), 1.4200, 1.4150 (29 January low), 1.4079 (21 January low).
Resistance level: 1.4394 (local high), 1.4442, 1.4530, 1.4600, 1.4668 (4 February high), 1.4700.
Long positions can be opened after the breakout of the level of 1.4385 (with the appropriate indicators signals) with the target at 1.4480 and stop-loss at 1.4330. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1.4290 with targets at 1.4200, 1.4150 and stop-loss at 1.4350. Validity – 2-3 days.