GBP/USD: moderate decline at the end of the week
Current trend
GBP is showing a slight decline against USD during the morning trading session, preparing to end the week near the local lows since July 2. The instrument is testing 1.3770 for a breakdown and expects new drivers to appear on the market, which may be the US Fed's monetary policy report and a block of macroeconomic statistics from the UK.
Macroeconomic data from the USA published the day before turned out to be contradictory. Initial Jobless Claims for the week ending July 2 unexpectedly increased from 371K to 373K, which turned out to be significantly worse than the positive market forecast of a decrease to 350K. Continuing Jobless Claims for the week ending June 25 fell from 3.484M to 3.339M, which was only slightly worse than expectations at 3.335M.
Support and resistance
Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. The MACD indicator is trying to reverse upwards, keeping a formal buy signal (the histogram is above the signal line). However, it is still not worth relying on such indicator readings at the moment. Stochastic, on the other hand, maintains a moderate decline, rapidly approaching the level of "20", which indicates increasing risks of oversold GBP in the ultra-short term.
Resistance levels: 1.3800, 1.3857, 1.3900, 1.3960.
Support levels: 1.3750, 1.3700, 1.3650, 1.3600.
GBP is showing a slight decline against USD during the morning trading session, preparing to end the week near the local lows since July 2. The instrument is testing 1.3770 for a breakdown and expects new drivers to appear on the market, which may be the US Fed's monetary policy report and a block of macroeconomic statistics from the UK.
Macroeconomic data from the USA published the day before turned out to be contradictory. Initial Jobless Claims for the week ending July 2 unexpectedly increased from 371K to 373K, which turned out to be significantly worse than the positive market forecast of a decrease to 350K. Continuing Jobless Claims for the week ending June 25 fell from 3.484M to 3.339M, which was only slightly worse than expectations at 3.335M.
Support and resistance
Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. The MACD indicator is trying to reverse upwards, keeping a formal buy signal (the histogram is above the signal line). However, it is still not worth relying on such indicator readings at the moment. Stochastic, on the other hand, maintains a moderate decline, rapidly approaching the level of "20", which indicates increasing risks of oversold GBP in the ultra-short term.
Resistance levels: 1.3800, 1.3857, 1.3900, 1.3960.
Support levels: 1.3750, 1.3700, 1.3650, 1.3600.