06, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell to 31-year low against the US dollar after the weak data of UK service sector. The Bank of England decided to launch new liquidity measures to support the financial sector.

Current situation

The GBP/USD remained under pressure. The pair was not able to break 1.3500 and decreased to 31-year lows. The resistance is at 1.3100, the support comes in at 1.2900.

Indicators remained in a red zone. MACD decreased, which is a sell signal. RSI entered the oversold zone, it is also a sell signal. The GBP/USD is below the Moving Averages (50, 100 and 200) on the 4 hour chart. The Moving Averages are moving downwards. All indicators support the bearish trend.

Trading recommendations

Sellers are targeting to test the psychological level 1.3000. If they succeed the pair will decrease to 1.2900.