Since the beginning of the week, the pair continues falling. The Pound was pressured by weak macroeconomic statistics from the UK where the Consumer Credit shrank from 1.822 to 1.298 million Pounds, against a forecasted decline to 1.6 million. In addition, Mortgage Approvals fell from 70.31 to 66.25 thousands.
Today attention needs to be paid to data on the PMI Construction and BOE’s Governor Carney speech in the UK.
Support and resistance
On the , the pair is falling after broking down the middle MA of , while bands are directed horizontally. histogram is in the positive zone and its volumes are falling. is in the oversold zone and keeping a sell signal.
The indicators recommend short positions.
Support levels: 156.56, 155.56, 154. 44 , 153.38.
Resistance levels: 158.08, 158.87, 159.60, 160.33, 161.25, 163.10, 163.83, 165.02.
Short positions can be opened from current prices with the target at 154. 44 and stop-loss at 159.60. Validity – 1-2 days.
Long positions can be opened from the level of 158.87 with targets at 160.33, 163.10 and stop-loss at 156.56. Validity – 1-2 days.