At present, markets are waiting for a new impetus. For two days, the GBP/USD pair has been trading within a narrow price range near the yesterday’s opening level. Today, the is likely to grow amid a series of releases, due both in Great Britain and the US.
The Governor of the Bank of England will comment on the UK current economic situation and the GBP exchange rate. In the US, it is worth noting Fed's Yellen Speech and housing market statistics.
Support and resistance
Technical indicators also suggest a possibility of high . The price range of indicator is narrowing down. The pair is between the upper and the middle MAs.
Support levels: 1.5462 (middle MA of ), 1.5426 (lower MA of ), 1.5200 (local low).
Resistance levels: 1.5498 (upper MA of ).
It can be assumed that, ahead of the news releases, the pair is likely to continue growing to the level of 1.5498, and then a significant decline will follow. Thus, at present, long positions can be opened at the current level with the target at 1.5498 and stop-loss at 1.5462; and Sell Limit orders can be placed at the level of 1.5498 with targets at 1.5462, 1.5426.
Otherwise, short positions can be opened if the price breaks down the level of 1.5462 with targets at 1.5426, 1.5200.