On Tuesday the pair GBP/USD traded in the wide range, shifting to from growth to decline. In the last two weeks the pair has been trying to break down resistance level of 1.5730 for four times.
Today, economic calendar will be eventful with the news from the UK and US, which means that volatility in the pair will be high. In the morning British GDP will become known; and later, US data on the number of initial applications for unemployment benefits in the USA, consumer personal income and spending and construction sector news will be released. If the British GDP will not be revised, it will have a positive effect on the Pound. Many investors believe that the UK is slowly getting out of recession and in the near future economic growth rate in the country will increase.
Support and resistance
Today, it is expected that projected growth will give way to the decline in price with the target level of 1.5600 (local lows and key support level). On Thursday and Friday high volatility is not expected, as it will be a public holiday in the USA.
Support levels: 1.5700, 1.5670, 1.5630, 1.5600, 1.5550, 1.5500 and 1.5400.
Resistance levels: 1.5730, 1.5750, 1.5790, 1.5875, 1.5910, 1.5950 and 1.6000.
In the current situation it makes sense to open short positions with stop-loss above the level of 1.5790 and take profit at 1.5600.
Analyst of LiteForex Investments LimitedPublication source