The pound and the USD fell on Wednesday and the technical bias is bearish due to lower lows in the recent downtrend.
At present, the pound and the USD are trading around 1.37400, multiple resistance levels can be seen above, which may prevent the price from rising further.
- Resistance level 1: 1.37650
- Resistance level 2: 1.38000
- Resistance level 3: 1.38450
Below the price, multiple support levels can be found, and these prices may form a supportive effect on the price and prevent further declines.
- Support level 1: 1.37050
- Support level 2: 1.36500
- Support level 3: 1.35700
In terms of data, the United States will announce the March PPI statistics on Friday. PPI data is an important indicator used by monetary policy makers to observe the level of inflation, so it is an important economic data. Higher numbers indicate that it is favorable to the US dollar, and therefore bearish against the pound-USD currency pair and vise versa.
Given the recent price trends and economic developments, it may be a good trading option to sell the pound-USD currency pair near the current level.