While China’s stock market keeps falling and the US cpi and FOMC minutes had yet to bereleased, American currency declined slightly during the Asian session.
The market should remain flat until US news is released; then, volatility may increase, but the pair is to remain within the range, though the pound tends to strengthen in cross pairs.
Yesterday, when UK Price Indexes for July were released, the pair hit new month low but remained within the range between 1.5690 and 1.5425, where is has been trading since July.
The middle line of the range is the zone between 1.5600 (38.2% Fibonacci) and 1.5500 (EMA144 on the daily chart) with the balance line 1.5550 (EMA200, EMA50 on the daily chart).
GBP/US is likely to trade between 1.5700 and 1.5400 until mid-September, when Fed announces its interest rate decision.
OsMA and Stochastic on the 4-hour chart are turning to sales. On the daily chart, Stochastic also gives a sell signal.
- Support levels: 1.5600, 1.5550, 1.5500, 1.5425, 1.5350, 1.5230.
- Resistance levels: 1.5690, 1.5775, 1.5900.