The last couple of days, the pair GBP/USD was trading in a narrow range between 1.5330 and 1.5420. After the publication of the GDP data for the UK, the pair lost around 170 points. After that, investors’ interest cooled down and price changes were insignificant.
Economic calendar for 10 July does not have important publications, which is likely to keep the market calm.
Support and resistance
On the 4-hour chart, Bollinger bands are narrowing down and the pair remains near the middle MA of the indicator. These is a signal of a formation of the new trend. The direction of the trend, however, is hard to predict.
The nearest resistance level is 1.5408 (middle MA of Bollinger Bands).
Support levels: 1.5924 (lower MA of Bollinger Bands), 1.5330 (local low).
Due to the absence of news from the UK, the most likely is the continuation of the downward movement.
Open short positions below 1.5370 with targets at 1.5330, 1.5294. Long positions can be opened after the price consolidation above 1.5430 with the target at 1.5525.Publication source