01, September 2016

GBP/USD (a 4-hour chart)

General overview

Positive Consumer Confidence in the UK slightly supported the pound. The index came in at -7 vs. expectations of -8. However, a strong US ADP report weighed on the sterling and the pair resumed its decrease.

Current situation

The GBP/USD pair showed a mixed dynamics on Wednesday. At first the price grew in the Asian session, then, the instrument turned around and resumed its decrease in the European and North American ones. The current resistance is seen at 1.3100, the support exists at 1.3000.

The indicators (MACD and RSI) generate a sell signal. The price is returning below the 50 and 100 EMAs in the 4 hours chart. The moving averages direction is downwards which is a sell signal.

Trading recommendations

We are looking for the 1.3100 level break and then continuation of a fall with a further target at 1.3000.