The pair is under pressure below the key resistance at 149.60. The relative strength index has been capped by a declining trend line since October 4. The British Pound rebounded after a two-day decline, as the IHS Markit/CIPS Purchasing Managers’ Index rose to 53.6 in September from 53.2 in August.
Therefore, as long as 149.60 is not broken, look for a further decline to 148.55. A break below this level would trigger another decline to 148.15.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 149.60 with the target at 149.90.
Strategy: SELL, Stop Loss: 149.60, Take Profit: 148.55
Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 149.90, 150.25 and 151.00
Support levels: 148.55, 148.15, and 147.75
The material has been provided by InstaForex Company – www.instaforex.com