Current trend
Today is a public holiday in the US so the volatility in the GBP/USD pair is expected to grow during the European session, when the UK releases Unemployment Rate and Average Earnings statistics for the third quarter.
According to the forecast, Unemployment Rate will remain unchanged at 5,4% while Average Earnings will grow from 3.0% to 3.2%.
At the same time, UK GBP came in at 0.5%, below the forecast of 0.6%, that suggests a slowdown of the economic growth. Thus, given expectations of a hike in the US interest rates, the pair will be under pressure at least until the forthcoming Fed meeting.
The BOE's Governor Mark Carney speech is worth paying attention to today as well. He is expected to give his assessment of the current economic situation in the UK.
Support and resistance
The price continues declining in a downward channel on the daily chart with the lower border at the level of 1.5000.
OsMA and Stochastic on the daily, weekly and monthly charts recommend short positions. At the same time, on the 4-hour chart, they indicate that an upward correction is likely to continue to the level of 1.5230 (23.6% Fibonacci, EMA50 and the upper border of a downward channel on the 4-hour chart).
While the pair remains below the resistance levels of 1.5450 (EMA200 and the upper border of the downward channel on the daily chart), 1.5400 (EMA144), 1.5330 (EMA50), it tends continue its downward trend to the levels of 1.5000, 1.4900 and 1.4600 (year lows).
Support levels: 1.5110, 1.5040, 1.5000, 1.4900.
Resistance levels: 1.5230, 1.5330, 1.5400.
Trading tips
Short positions can be opened from the level of 1.5145 with targets at 1.5110, 1.5085, 1.5040, 1.5010, 1.4980, 1.4910 and stop-loss at 1.5185.
Long positions can be opened from the level of 1.5210 with targets at 1.5230, 1.5290, 1.5330, 1.5390 and stop-loss at 1.5180.
Today is a public holiday in the US so the volatility in the GBP/USD pair is expected to grow during the European session, when the UK releases Unemployment Rate and Average Earnings statistics for the third quarter.
According to the forecast, Unemployment Rate will remain unchanged at 5,4% while Average Earnings will grow from 3.0% to 3.2%.
At the same time, UK GBP came in at 0.5%, below the forecast of 0.6%, that suggests a slowdown of the economic growth. Thus, given expectations of a hike in the US interest rates, the pair will be under pressure at least until the forthcoming Fed meeting.
The BOE's Governor Mark Carney speech is worth paying attention to today as well. He is expected to give his assessment of the current economic situation in the UK.
Support and resistance
The price continues declining in a downward channel on the daily chart with the lower border at the level of 1.5000.
OsMA and Stochastic on the daily, weekly and monthly charts recommend short positions. At the same time, on the 4-hour chart, they indicate that an upward correction is likely to continue to the level of 1.5230 (23.6% Fibonacci, EMA50 and the upper border of a downward channel on the 4-hour chart).
While the pair remains below the resistance levels of 1.5450 (EMA200 and the upper border of the downward channel on the daily chart), 1.5400 (EMA144), 1.5330 (EMA50), it tends continue its downward trend to the levels of 1.5000, 1.4900 and 1.4600 (year lows).
Support levels: 1.5110, 1.5040, 1.5000, 1.4900.
Resistance levels: 1.5230, 1.5330, 1.5400.
Trading tips
Short positions can be opened from the level of 1.5145 with targets at 1.5110, 1.5085, 1.5040, 1.5010, 1.4980, 1.4910 and stop-loss at 1.5185.
Long positions can be opened from the level of 1.5210 with targets at 1.5230, 1.5290, 1.5330, 1.5390 and stop-loss at 1.5180.