On Monday, the GBP/USD pair was growing moderately amid quite strong macroeconomic statistics on the UK and not so favorable data on the US.
In particular, the amount of consumer credits in the UK was up to 1.564 billion in January from 1.148 billion pounds that notable exceeded the forecast of 1.3 billion pounds. Mortgage approvals grew to 74.581K in January from 71.335K, while analysts expected the indicator to come in at 73.6K.
At the same time, data on the US came in below the forecast again. Chicago purchasing managers' index fell to 47.6 points in February from 55.6 points against the forecast of 53.3 points. Pending home sales were down by 2.5%, though a 0.5% increase was expected.
Support and resistance
Bollinger Bands indicator on the daily chart is directed down. The price range is narrowing down at the bottom but still remains wide enough allowing the price to move towards new lows. MACD is growing and is about to form a buy signal. Stochastic is in the oversold zone and trying to turn up indicating the possibility of an upward correction in the short term.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.3878 (24 February low), 1.3800, 1.3700.
Resistance levels: 1.4000, 1.4057 (near 26 February high), 1.4150, 1.4200, 1.4234, 1.4300, 1.4350, 1.4394 (19 February level), 1.4442, 1.4530.
Long positions can be opened if the price breaks out and consolidates above the level of 1.4000 with targets at 1.4050, 1.4160 and stop-loss at 1.3970. Validity – 2-3 days.
Short positions can be opened if the price rebound down from the level of 1.4000 and falls below 1.3930 with targets at 1.3850, 1.3800 and stop-loss at 1.3960. Validity – 2-3 days.