Current trend
Yesterday, the Pound grew against the USD amid positive GDP data from the UK. According to the preliminary report, in the second quarter of the year the GDP grew by 0.7% (against 0.4% for the previous quarter) that amounts to a yearly growth of 2.6%. In both cases, the figures matched the forecasts.
At the same time, the USD remained under pressure amid poor Consumer Confidence data that fell to 90.9 in July, and as the markets are waiting for the outcome of the Fed two-day meeting.
On Wednesday, attention should be paid to the Fed Interest Rate Decision in the US and the Consumer Credit data from the UK.
Support and resistance
Bollinger Bands on the daily chart narrowed down, while the middle MA is trying to turn up. The indicator points out to a possibility of the bear sentiment in the medium-term.
MACD is giving a very weak buy signal. Stochastic is approaching the overbought zone, giving a buy signal in the short-term.
Resistance levels: 1.5600 (psychologically important level), 1.5645 (local high), 1.5700, 1.5770 (local high), 1.5800.
Уровни поддержки: 1.5520 (a short-term bear target), 1.5465 (24 July low), 1.5400, 1.5330 (8 July low).
Trading tips
Open long positions after the breakout of the level of 1.5645 (with the appropriate indicators signals) with targets at 1.5700, 1.5770 and stop-loss at 1.5520.
Short positions can be opened after the price rebound from the level of 1.5645 with the target at 1.5465 and stop-loss at 1.5700.
