06, October 2016

GBP/USD (a 4-hour chart)

General overview

The pound remained under pressure as the ongoing concerns of 'hard Brexit' kept weighing on market sentiment.

Current situation

The GBP/USD fell to its lowest level in more than 30 years and keeps falling now. The downtrend stalled at 1.2700 on Wednesday. The market was inactive after nearly five-day decrease. Sellers consolidated its gains and held the price at the current lows. The 50, 100 and 200 EMAs maintained their bearish slope. The current resistance is seen at 1.2800, the support lies at 1.2700. 

MACD is in the negative area. MACD decreased which confirms the strength of sellers. RSI is in the oversold area.

Trading recommendations

The GBP/USD may recover to reverse some of its losses. The pound could grow to 1.2840. Our near-term outlook is bearish. We expect the price to decline further.