Last week, the GBP/USD pair managed to strengthen amid weak US macroeconomic indicators, in particular, when Retail Sales statistics were released on Friday. However, at present, the dynamics has changed.
This week, attention needs to be paid to Producer Price Index, Retail Price Index and Consumer Price Index, due in the UK. The US, in its turn, releases Consumer Price Index. Favorable statistics may strengthen the national currencies.
NY Empire State Manufacturing Index is due today in the US. Analysts forecast a rise from -11.36 to -6.00 points. Nevertheless, the indicator does not influence much market volatility.
Support and resistance
On the daily chart, MAs with 10 and 20 periods are above the current price and directed downward. MACD histogram is in the negative zone, its volumes are growing. According to the indicators, the pair tends to decline, but no high volatility is expected today so the price is likely to trade within the range of 1.5268-1.5061, which was formed by MA10 and the lower MA of Bollinger Bands.
Support levels: 1.5061 (lower MA of Bollinger Bands), 1.5026 (last week low).
Resistance levels: 1.5268 (last week high), 1.5292 (middle MA of Bollinger Bands), 1.5520, 1.5821.
Short positions can be opened from the current level with the target at 1.5120 and stop-loss at 1.5268.
Long positions can be opened after the consolidation above the level of 1.5268 with the target at 1.5360 and stop-loss at 1.5230.