06, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound grew due to better-than-expected Service PMI and due to the weakness of the dollar.

Current situation

The pound rallied and tested the level 1.3360 on Monday. The sterling was able to set a daily high at 1.3372. After reaching the level 1.3360 the pair slightly rolled back and erased some of its gains. The GBP/USD hovered above the moving averages in the 4 hours chart. The moving averages are turning upwards. The current resistance is seen at 1.3360, the support exists at 1.3200.

MACD shows convergence in the 1 hour chart. RSI is in the overbought area.

Trading recommendations

We will place buy orders if the GBP/USD does a breakout at the resistance level of 1.3360. If the pair gets below 1.3270 the price may reach 1.3200.