Following a strong growth in the USD on Friday, a correction in the USD pairs has started today. Today is the last day of the month, thus, market participants may take profits on part of USD long positions.
High volatility is expected during the week amid publication of important macroeconomic indicators, both in the US and the UK.
In general, the GBP/USD pair will remain under pressure until BoE and Fed meetings, due on 10 December and 15-16 December, respectively. While, the Fed is likely to raise its interest rates at the upcoming meeting, a hike in UK interest rates is postponed amid almost zero inflation and GDP growth.
Support and resistance
The GBP/USD pair is declining in a channel on the daily chart with the lower border below the level of 1.5000, after the breakdown of which the price may fall to its year lows at 1.4600.
On the daily, weekly and monthly charts, OsMA and Stochastic recommend short positions. On the 4-hour chart, the indicators are turning to long positions that suggests possibility of an upward correction towards 1.5110, 1.5190 and 1.5230 (EMA50 and 23.6% Fibonacci).
Support levels: 1.5000, 1.4900.
Resistance levels: 1.5110, 1.5190, 1.5230, 1.5280, 1.5400.
Short positions can be opened from the level of 1.5010 with targets at 1.4980, 1.4910 and stop-loss at 1.5040.
Long positions can be opened from the level of 1.5050 with targets at 1.5090, 1.5110, 1.5165, 1.5190, 1.5230 and stop-loss at 1.5010.