03, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The positive Construction PMI boosted the pair upwards fueling its upward momentum. The concerns over the Fed’s rate hike together with the weak USA statistics weighed on the dollar.

Current situation

The pound strengthened on the dollar's weakness on Tuesday. The Sterling grew and left behind the side channel. The GBP/USD pair set a fresh high at 1.3356. The current resistance is seen at 1.3500, the support exists at 1.3300.

MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI is approaching the oversold territory. The indicators generate a buy signal.

The price left the 50 and 100 Day EMAs behind and is approaching the 200-EMA in the 4 hours chart. The 50, 100 and 200 EMAs are neutral. The moving averages are still neutral and do not generate any signal.

Trading recommendations

The pair had a positive day on Tuesday and it has all chances to have the same one on Wednesday. We feel comfortable taking short-term long positions. The instrument seems to be heading towards the resistance 1.3500.