GBP/USD: BoE meeting and interest rates

FX:GBPUSD   British Pound/U.S. Dollar
31 0 0
Current trend

The US dollar             is strengthening amid growing possibility of a rate hike at the forthcoming Fed meeting.
At the same time, the Bank of England publishes its interest rate decision and gives comments, concerning further monetary policy , today. Despite the UK has recently released some favorable statistics on Manufacturing PMI, Labour Productivity and Retail Sales, the GDP growth remains at a low level. The GDP indicator for the third quarter came in at 0.5%, below the forecast of 0.6%. Thus, interest rates are likely to be raised no earlier than mid-2016.

Support and resistance

The pair is trading below the key resistance levels of 1.5425 (EMA144), 1.5470 (EMA200 on the daily chart ). The breakdown of the support level of 1.5375 (EMA50 on the daily chart and EMA200, EMA144 on the 4-hour chart) allows the price to decline to 1.5270, 1.5230 (23.6% correction), 1.5170, 1. 5110             (September and May lows), 1.5000. Alternatively, after the breakout of the level of 1.5470 (EMA200), the price may grow to 1.5600 (38.2% Fibonacci correction), 1.5750 (EMA144 on the weekly chart) and 1.5900 (EMA200 and 50.0% Fibonacci).
OsMA and Stochastic indicators are not giving clear trading signals.

Support levels: 1.5375, 1.5300, 1.5270, 1.5230.
Resistance levels: 1.5425, 1.5470, 1.5500.

Trading tips

Short positions can be opened from the level of 1.5365 with targets at 1.5310, 1.5290, 1.5230, 1.5190 and stop-loss at 1.5410.
Long positions can be opened from the level of 1.5430 with targets at 1.5470, 1.5490, 1.5525, 1.5590 and stop-loss at 1.5390.
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