The previous week was quite volatile for the GBP/USD that traded in a range of 1.5340-1.5465. On Wednesday, following the publication of data on the UK labour market, the pound managed to rise to a resistance level of 1.5465, but did not break it down. On Friday, the British currency lost points against a backdrop of negative data on retail sales. The trading session closed below 1.5400.
The pair dropped at the beginning of this week and held below 1.5385. At present, the GBP/USD is trading near the lower limit of the channel that will be hardly broken. Bulls are expected to attempt to get back to a level of 1.5450 and hold at it.
January's data on US consumer price index and UK GDP in fourth quarter of this year are worth attention this week.
Support and resistance
Technical indicators are pointing to a further decline of quotes on H4 chart.
Resistance levels are: 1.5385, 1.5405, 1.5440, and 1.5465.
Support levels: 1.5350, 1.5315, 1.5300, and 1.5280.
Sell below the level of 1.5340 with the target at 1.5290. Buy above the level of 1.5385. It would be also wise to place Sell Limit orders at 1.5450.
Analyst at LiteForex Investments Limited