Our pair continues to be in a narrow corridor and volatility in the pair has declined over the past few days. Today we are waiting for a number of macroeconomic indicators for the United Kingdom. The average salary level for March was worse than the forecasted level, and the number of applications for unemployment benefits for April exceeded the expected figure two and a half times. The only positive indicator was the change in the employment statistic for 3 months, which was 197.0K instead of the forecast of 129.0K.
We expect reports on retail sales and speeches by FOMC members in the United States.
Considering our 4-hour chart, we expect the resumption of the downtrend in the pair. The price continues to be below the level of 1.36, which is a strong resistance level observed on the daily chart.
Furthermore, the MACD still cannot overcome the zero mark, while the RSI continues to be in the oversold zone. Therefore, we believe that the downward movement will continue. We recommend taking short positions with a stop-loss above 1.36, while take-profits should be set at 1.3520 and 1.3460.
