The GBP/USD rate declined yesterday against a backdrop of UK unconvincing macroeconomic statistics. According to the information published, GDP did not live up to forecasts of 0.4% in the first quarter of 2015 and remained at the same level of 0.3%. So, sellers made the GBP/USD rate drop to May's trough at 1.5260. However, the Pound managed to claw back some losses afternoons once US negative statistics were published. Initial jobless claims amounted to 2,222 million in May, which is worse than the previous value of 2,211 million.
Today, May 29th, market participants are waiting for information on US GDP in the first quarter which is to be released at 15:30 GMT+3. The index is expected to fall. If expectations prove to be correct, GBP/USD will grow.
Support and resistance
Bollinger Bands are directed upwards on H4 chart, pointing to the continuation of the downtrend. The MACD histogram is located in the negative zone, but its volumes are decreasing gradually, which indicates sellers' decreasing activity.
Support levels: 1.5260, 1.5200, 1.5145.
Resistance levels: 1.5340, 1.5390, 1.5440, 1.5500.
Open short positions at the current price with the nearest target at 1.5260. A firm breakout will open a way to a level of 1.5200. If positive macroeconomic data will form an uptrend, long positions may be opened above a level of 1.5390 with a target of 1.5540. A level of 1.5500 is buyers' long-term target.Publication source