02, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell to a session low when the Manufacturing PMI in the UK showed an increase in May. Organization for Economic Co-operation and Development reduced the growth forecast for the UK economy and warned about the consequences of a possible Brexit.

Current situation

The pound continued to decline. On Tuesday the GBP/USD tested the support level of 1.4400. The pair is at a 5-day low. The resistance of 1.4760 limits the growth at the daily time frame. The resistance is at the level of 1.4480, the support is at 1.4400.

MACD is in a negative zone below the signal line. The signal line is in the histogram. The indicator continued its decline showing a sell signal. The RSI signal line is close to the oversold zone.

Trading recommendations

We expect the 1.4480 line break that will open the way for the buyers to 1.4560.