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 , 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 ). The breakdown of the of 1.5375 (EMA50 on the 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 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.
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.