The pair continues falling amid strengthening in the US Dollar that remains supported by expectations of tightening by the Fed before the end of the year. At the same time, the probability of an interest rate increase at the meeting, which is due this week, stands at only 10%. In addition, the Pound remains under pressure after the publication of week data on Retail Sales in the UK that showed a decline in August. The data returned worries that the British economy may slow down as the result of the decision to leave the EU.
Support and resistance
The price is heading towards a strong at 1.2900 that it has tested twice already.
On the 4-hour chart, the pair is falling towards the lower line of while bands are directed down.
Support levels: 1.2900, 1.2860.
Resistance levels: 1.3070, 1.3100, 1.3150, 1.3200.
Short positions can be opened from current prices with the target at 1.2900 and stop-loss at 1.3100.
Pending buy orders can be placed at the level of 1.2900 with the target at 1.3100 and stop-loss at 1.2850.