Current trend
GBP is strengthening against USD during the morning session, again trying to recover after the flat start of the trading this week.
Investors expect new drivers to appear on the market, but for now they are only sluggishly taking a lead from the US macroeconomic statistics. On Tuesday, additional pressure on USD was exerted by data on the dynamics of new home sales, which reflected a decrease in the indicator by 5.9% MoM in April after rising by 7.4% MoM in March. In absolute terms, sales fell from 0.917M to 0.863M, while the market expected an increase in volume to 0.95M.
At the same time, house prices continue to rise moderately as the US economy recovers. Housing Price Index in March accelerated from +1.1% MoM to +1.4% MoM. In turn, the S&P/Case-Shiller Home Price Indices for the same period added 13.3% YoY after increasing by 12% YoY in February.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is narrowing, reflecting appearance of multi-directional dynamics in the short term. MACD is slightly declining preserving a previous sell signal (located below the signal line). Stochastic reversed horizontally approximately at the center of its area, pointing to the temporary balance of power in the ultra-short term.
Resistance levels: 1.4200, 1.4232, 1.4275.
Support levels: 1.4150, 1.4100, 1.4050, 1.4000.
GBP is strengthening against USD during the morning session, again trying to recover after the flat start of the trading this week.
Investors expect new drivers to appear on the market, but for now they are only sluggishly taking a lead from the US macroeconomic statistics. On Tuesday, additional pressure on USD was exerted by data on the dynamics of new home sales, which reflected a decrease in the indicator by 5.9% MoM in April after rising by 7.4% MoM in March. In absolute terms, sales fell from 0.917M to 0.863M, while the market expected an increase in volume to 0.95M.
At the same time, house prices continue to rise moderately as the US economy recovers. Housing Price Index in March accelerated from +1.1% MoM to +1.4% MoM. In turn, the S&P/Case-Shiller Home Price Indices for the same period added 13.3% YoY after increasing by 12% YoY in February.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is narrowing, reflecting appearance of multi-directional dynamics in the short term. MACD is slightly declining preserving a previous sell signal (located below the signal line). Stochastic reversed horizontally approximately at the center of its area, pointing to the temporary balance of power in the ultra-short term.
Resistance levels: 1.4200, 1.4232, 1.4275.
Support levels: 1.4150, 1.4100, 1.4050, 1.4000.