Since opening of the European session, the GBP/USD pair is growing and recovering some losses of last week’s fall. In addition, the GBP finds some support in falling EUR/GBP pair.
However, prior to Friday’s Non-farm Payrolls for September from the US, the pair can continue falling. More pressure on the pair could come from the UK data on the Consumer Credit, Mortgage Approvals, second quarter GDP and the Current Account, if it comes out worse than forecasts.
Support and resistance
The GBP/USD pair returned to the support level at 1.5230 (23.6% Fibonacci). If a breakdown of this level turns out to be false, the price could consolidate between the ЕМА144 (1.5470) and ЕМА200 (1.5520) on the daily chart. Similar rebounds it demonstrates since May.
An upward correction in the pair could reach the levels of 1.5335, 1.5410 (ЕМА50, ЕМА144 on the 4-hour chart), while the price consolidation above the level of 1.5520 would allow the pair to grow to 1.5600 (38.2% Fibonacci), 1.5700, 1.5900 (50% Fibonacci).
At the same time, a breakdown of the level of 1.5180 (June and August lows) would send the pair to the level of 1.4600 (year lows).
OsMA and Stochastic on the daily chart give sell signals, while on the 4-hour chart hey turn to purchases.
Support levels: 1.5180, 1.5100.
Resistance levels: 1.5335, 1.5410, 1.5470, 1.5520.
Pending sell orders can be placed from the level of 1.5170 with target at 1.5110, 1.5050 and stop-loss at 1.5260.
Pending buy orders can be placed at the level of 1.5290 with targets at 1.5335, 1.5350, 1.5400, 1.5450, 1.5490 and stop-loss at 1.5210.