Ahead of the BoE Governor Mark Carney’s appearance, the pair came under pressure when Philip Hammond, UK Chancellor of the Exchequer, suggested extension of the BoE’s program. The pair, however, then recovered almost all it losses amid the speech of the head of the British regulator. Mark Carney expressed concerns over the depreciation of the national currency. A “fairly substantial” fall in the Pound will be taken into account when deciding on interest rates, he said.
Tomorrow particular attention needs to be paid to data on UK’s third-quarter GDP figures. Experts suggest that Britain’s economic growth slowed down from 0.7% to 0.3% that could pressure the Pound. In the afternoon, the American currency, on its part, could gain support amid the publication of strong data on orders for durable goods in the US.
Support and resistance
On the 4-hour chart, the price has not managed to consolidate above the strong of 1.2210. is moving down while the price range has been showing almost no changes. histogram remains in the region of the zero line. is approaching the border of the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.2184, 1.2161, 1.2125, 1.2082.
Resistance levels: 1.2210, 1.2244, 1.2259, 1.2283, 1.2310, 1.2330.
Short positions can be opened from the level of 1.2190 with the target at 1.2115 and stop-loss at 1.2230. Validity – 1-2 days.
Long positions can be opened from the level of 1.2250 with the target at 1.2330 and stop-loss at 1.2230. Validity – 2-4 days.