03, October 2016

GBP/USD (a 4-hour chart)

General overview

The pound strengthened against the dollar on the back of strong UK economic reports.

Current situation

The sterling remained under pressure on Friday. An attempt to grow was stopped above 1.3000. Buyers were not able to hold above the level and had to return below it. The price failed to break the 50-EMA and after a short period returned below it. The 50, 100 and 200 EMAs accelerated their decline. The current resistance is seen at 1.3000, the support exists at 1.2900. 

MACD decreased which confirms the strength of sellers. RSI is consolidating within the oversold area.

Trading recommendations

The level 1.2950 limits further decline of the pair. A close below the level will trigger losses towards 1.2900. After breaking the level the price will advance to 1.2800.