According to HBOS data, released today Halifax housing price index, has grown again (+1.7% in January against 2.0% in December; over the last three month +9.7% versus 9.5% in December on the annual basis).
This data has supported the GBP, as the overheated market will not allow to reduce interest rate in the UK.
Today, at 14:00 (GMT+2) the Bank of England will announce its interest rate decision, at 14:45 (GMT+2) Mark Carney, the head of the Bank of England will make his comments.
The pair GBP/USD has significantly grown on Wednesday due to the poor data on the US business activity index in the service sector. The rise in the pair amounted to 220 points. Today, the pair continues to go up, rising by 50 points since the opening session today.
Technically, the pair is at the resistance level of 1.4660 (Fibonacci 50% and ЕМА50 on the daily chart).
On the daily and four-hour charts the indicators OsMA and Stochastic are in the overbought zone. The rise in the pair can be suspended in case of the pessimistic comments by Mark Carney. In such case, breakdown of support level of 1.4530 (Fibonacci 382% and ЕМА200 on the four-hour chart) can trigger further decline in the pair GBP/USD. Consolidation of the price below support level of 1.4370 (Fibonacci 23.6%) will bring the pair back to the downtrend and enable the decline to the levels of 1.4210 and 1.4100 (lows of the year).
The rise above resistance level of 1.4800 (Fibonacci 61.8%) can lead the pair to resistance level of 1.5000 (ЕМА144 on the daily chart).
However, the most important economic news will be known tomorrow (Non-Farm PayRolls) at 15:30 (GMT+2); it can change the technical picture and affect movement in the pairs with the USD until the meeting of the US Fed in March.
Support levels: 1.4530, 1.4460, 1.4370, 1.4210, 1.4100, and 1.4000.
Resistance levels: 1.4660, 1.4700 and 1.4800.
Sell Stop: 1.4590. Stop-Loss: 1.4630. Take-Profit: 1.4530, 1.4460, 1.4370, 1.4310, 1.4210 and 1.4100.
Buy Stop: 1.4710. Stop-Loss: 1.4650. Take-Profit: 1.4800, 1.4900 and 1.5000.