02, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound dropped on Monday trades on the back of the negative Manufacturing PMI in the country.

Current situation

The technical picture presents a slightly bullish tone. The GBP/USD pair tried to regain the 1.3200 level. However, the negative UK Markit’s manufacturing PMI weighed on the pound which retreated from the daily highs. The instrument is currently trading around 1.3200. 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 neutral. Indicators do not generate a firm signal.

The price is getting support from the 100-EMA in the 4 hours chart. The 50, 100 and 200 EMAs are neutral. The moving averages do not generate any signal.

Trading recommendations

The general tone is neutral. Traders do not hurry to trade ahead of the BOE's meeting this Thursday. We expect neutral trades within its usual range.