GBP/USD: Pair In Correction
LiteForex Europe | Feb 26, 2016 07:06AM ET
Yesterday the pair entered an upward correction after a significant fall of the beginning of the week.
The pair was supported by a recovery of the European stock markets and positive data from the UK. The UK GDP growth in the fourth quarter of 2015 amounted to 0.5% on a quarter-to-quarter basis and 1.9% on a year-to-year basis that matched the forecasts of economists.
At the same time, the pair was pressured by strong data on Durable Goods Orders from the US. In January, the index grew by 4.9% that was substantially better than forecasted 2.5% and the previous figure of -5.0%.
Bollinger Bands on the daily chart is moving down while the price range is widening from the bottom. However, the price only now returns inside the range. MACD is falling. Stochastic is in the oversold zone and trying to turn up.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.3878 (24 February low), 1.3800 (2009 low).
Resistance levels: 1.4000 (local high), 1.4079, 1.4150, 1.4200, 1.4234, 1.4300, 1.4350 (19 February high).
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