The British currency started the week with an aggressive growth, strengthening to the level of 1.5600, where the pair was trading at the beginning of last week.
At the same time, the current situation favors the US dollar and its weakening is caused mainly by some technical factors. Last Friday, the USA published Employment statistics for June; though the figures were somewhat lower than projected, no significant negative response followed.
Atlanta Fed President Dennis Lockhart gave comments on the US economic situation and noted that Employment statistics for June do not raise any concerns and interest rates hike are still likely to be increased this September.
Support and resistance
Bollinger Bands on the daily chart moves sideways. Amid the significant GBP growth, seen on Monday, the indicator has almost finished giving its “bullish” signal. Wait for a clearer situation.
MACD still keeping a weakening buy signal (the histogram is above the signal line). Moreover, the indictor is trying to set above the zero line. The indicator recommends long positions, however, do not hurry with placing your orders.
Stochastic is approaching the overbought zone. The indicator recommends long positions in the short run.
Support levels: 1.5520, 1.5464 (used to be a strong support near 24 July lows), 1.5400 è 1.5330 (8July low).
Resistance levels: 1.5600 (the nearest mark), 1.5645 (5 August level), 1.5700, 1.5770, 1.5800 (near 24 July local high).
Open long positions when the price breaks through and rebounds from 1.5600 (with appropriate indicators signals). Set take-profit at 1.5700 and stop-loss at 1.5520.
Open short positions when the price bounces down from 1.5600 or breaks down 1.5520 with targets at 1.5500-1.5400 and stop-loss no further than 70-80 points from the entry point.Publication source