The British currency continues to trade in a range of 1.5100-1.5000 against the dollar. The upbeat data on UK production activity index and business activity index in the construction sector were not enough for the pound to recover substantially.
Today, a number of US releases, such as production orders and report on oil stocks, are worth attention. Upbeat data on UK PMI index in the service sector are expected tomorrow, but bearish sentiment will still prevail and a volume of short positions will grow after each ascending movement.
Support and resistance
The likeliest scenario for today is a sideways movement within the current range. It means that short positions opened from the range borders may yield profits. In the medium term, the pair may continue to move within a descending range and may soon break the latest local low at 1.4950 heading for a level of 1.4825.
Support levels: 1.5030, 1.5000, 1.4950, 1.4890, 1.4950, 1.4925.
Resistance levels: 1.5050, 1.5100, 1.5120, 1.5190, 1.5225, 1.5270, 1.5350.
In the medium term, increasing short positions in the presence of upward corrections from the levels 1.5100, 1.5120, 1.5190 with profit fixing at 1.4850 (1.4825) seems relevant to the situation.
Analyst of LiteForex Investment Limited