01, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound grew on the back of the positive data. The Fed decision over the rate hike together with worse-than-expected Q2 GDP data pressured the dollar.

Current situation

The pound rallied to a fresh 11-day high when the dollar was hurt by a worse than expected US GDP. The trading instrument gained more than 130 pips and set a new high at the mark 1.3300. This is the highest level since July 18th. The current resistance is seen at 1.3300, the support exists at 1.3100.

MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI is heading to the overbought territory which is a buy signal.

The price broke the 100-EMA and stayed over it in the 4 hours chart. The moving averages lines with periods 50, 100 and 200 are trending downwards.

Trading recommendations

The GBP/USD has all chances to grow on the back of a weak dollar. The level 1.3300 is the first buyers’ target.