GBP/USD: analysis and forecast
Since the beginning of the week, the GBP/US D pair has been trading down. Having reached its month high at 1.4435, the price turned down and lost more than 250 points.
Today, market volatility remains low. The Bank of England announces its interest rate decision tomorrow. As for today, market participants are waiting for the Fed’s interest rate decision. The regulator is expected to keep interest rates unchanged at 0.5%. Moreover, attention needs to be paid to data on inflation and industrial production, due in the US today as well.
Support and resistance
On the 4-hour chart, the price range of Bollinger Bands is widening. MACD histogram is in the negative zone; its volumes are growing.
Support levels: 1.4105, 1.4043, 1.3990.
Resistance levels: 1.4159, 1.4197, 1.4240, 1.4284.
Short positions can be opened after the price breaks down and consolidates below the level of 1.4105 with targets at 1.4043, 1.3990 and stop-loss at 1.4130.
Long positions can be opened after the price consolidates above the level of 1.4197 with targets at 1.4284, 1.4346 and stop-loss at 1.4166.