Current trend
Yesterday, the British currency grew supported by the publication of favorable UK macroeconomic statistics. Later, when US data was released, US currency managed to gain back some of its losses, however, in general, a strong “bullish” potential in the pair remained.
UK Consumer Price Index grew by 0.1% in the year to June, exceeding the expectations. On a monthly basis, the indicator lost 0.2%; nevertheless, the actual data was still above the forecasts. Core Consumer Price Index grew from 0.8% to 1.2% in July.
Support and resistance
Bollinger Bands indicator on the daily chart shows a weak downward signal. Short positions may be considered; however, “bearish” dynamics should be confirmed yet.
MACD indicates an upward trend. Keep opened long positions and wait to open new ones.
Stochastic continues declining. Place buy orders in the short run.
Support levels: 1.5659, 1.5600, 1.5558 (18 August local low), 1.5520, 1.5465 and 1.5400.
Resistance levels: 1.5700 (near current local highs), 1.5770, 1.5800 (24 July high), 1.5850, 1.5900.
Trading tips
Open long positions after the breakout of 1.5700 (with appropriate indicators signals) with the target at 1.5800 and stop-loss at 1.5600.
Open short positions when the pair turns down neat the current levels of 1.5659, 1.5700 with targets at 1.5600, 1.5558 and stop-loss at 1.5750.
