07, October 2016

GBP/USD (a 4-hour chart)

General overview

The pound refreshed 3-decade lows. The UK currency remains vulnerable amid Brexit-related concerns.

Current situation

The pair is now grossly oversold in the short term. The pound traded onto the latest lows on Thursday. The price remained in a tight range between 1.2700 - 1.2800 during the European trades. The sterling moved lower ahead of the US opening. The GBP/USD moved lower under the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages kept heading south. The current resistance is seen at 1.2700, the support lies at 1.2600. 

MACD remained at the same level which confirms the strength of sellers. RSI is in the oversold area.

Trading recommendations

The pound is expected to remain vulnerable due to ongoing Brexit. The GBP/USD pair is likely to decline further. The next sellers' target is the level 1.2600. After breaking the level sellers will push the price to 1.2500.