07, September 2016

GBP/USD (a 4-hour chart)

General overview

The GBP/USD is positive due to a strong Services PMI in the country. Moreover, the sterling grew on the back of a weak U.S Non-Manufacturing PMI on Tuesday.

Current situation

There were no major events on the UK schedule and the pound traded under the influence of external factors. The pair remained in green figures on Tuesday. The price recovered from yesterday’s lows and returned to the resistance 1.3360 during the European session. The instrument accelerated upwards and broke the 1.3360 in the North American session. The 4 hours chart shows that GBP/USD hovered over the moving averages which are modestly bullish. The 50-EMA rebounded from the 100-EMA and crossed upwards the 200-EMA which is a buy signal. The current resistance is seen at 1.3500, the support exists at 1.3360.

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

Trading recommendations

The level 1.3360 is the key level now. If the price gets below it we will take into account a continuation of the downtrend towards 1.3200. To trigger additional upward momentum the GBP/USD needs to consolidate over 1.3360.