GBP/USD: Pair Is Falling
LiteForex Europe | Apr 12, 2016 08:54AM ET
Yesterday the pair continued falling amid weakening in the GBP. The pound is pressured by the possibility of Britain leaving the EU. According to estimates, if the results of the referendum that is due on 23 June are positive, the Pound might fall by 6-8%.
In addition, the pair was pressured by data on the US labour market. The number of Initial Jobless Claims fell from 276 to 267 thousands, while experts predicted a fall to 270 thousands. At the same time, the number of Continues Claims grew to 2.191 million that was worse than forecasts.
Bollinger Bands® on the daily chart is moving down while the price range is widening from the bottom. MACD is falling. Stochastic is trying to turn up near the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.4056 (local low), 1.4000 (psychologically important level), 1.3914, 1.3833 (29 February low), 1.3800.
Resistance levels: 1.4117 (local high), 1.4200, 1.4241, 1.4300 (4 April high), 1.4350, 1.4394, 1.4435, 1.4461 (30 March high), 1.4513 (18 March high), 1.4600, 1.4668 (4 February high).
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