31, October 2016

GBP/USD (a 4-hour chart)

General overview

 According to the latest news Mark Carney will serve a full term through 2021. The news slightly supported the sterling which decline afterwards. The published statistics did not support the pound which continued to move lower.

Current situation

The GBP/USD remained in a flat on Monday. The price moved lower from last week high and returned into the range. The pound erased the Friday’s recovery gains amid renewed dollar buying interest. The moving averages keep heading lower in the 1 hour chart. The price broke the 50 and 100 EMAs and advanced lower in the same chart. The current resistance is seen at 1.2200, the support is at 1.2100.

MACD is in the negative area. MACD decreased which indicates the sellers’ positions strengthening. RSI remained close to the oversold area.

 Trading recommendations

 If the downward pressure persists we cannot rule out the chance that the pair would try to retake the level at 1.2100. If succeeded, sellers will push the GBP/USD pair towards 1.2050.