Nationwide Housing Prices data has been released today in the UK. Despite the indicator came in at 4.5% in annual terms, the GBP/USD pair fell to its April lows. At present, a correction might start – the price has turned up and is trading in the area of 1.4823.
Not much macroeconomic data is released ahead of the New Year holidays. Today, attention needs to be paid to Pending Home Sales statistics, due in the US. Analysts forecast the indicator to come in at 0.5% from 0.2% that might support the US Dollar . Nevertheless, no high trading activity should be expected.
Support and resistance
On the 4-hour chart, MA50, MA100 and MA144 are above the current price and directed down, indicating a fall in the pair. histogram is in the negative zone, and its volumes remain almost unchanged. The lines of are directed down; according to the indicator, the price tends to decline.
During the day, the pair is likely to be trading within the channel 1.4791-1.4876.
Support levels: 1.4791 (lower MA of ).
Resistance levels: 1.4876 (middle MA of ), 1.4922, 1.4963.
Long positions can be opened at the current level with the target at 1.4876 and stop-loss at 1. 4800 .
Short positions can be opened from the level of 1.4876 with the target at 1. 4800 .
Validity – 1-2 days.