08, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The sterling made an attempt to grow as traders believed that the BoE's monetary easing program will support the country economy. However, the better-than-expected U.S jobs data weighed on the pound which sharply fell.

Current situation

The GBP/USD continued to trade in the negative ground. The pound had a sharp drop below the support level of 1.3100 and formed a lower low there. The lowest trading price was marked at 1.3020. The current resistance is seen at 1.3100, the support exists at 1.2900.

MACD still shows a divergence. The histogram decreased which indicates the sellers’ strength. RSI approached the oversold area.

The trading instrument remained below the 50, 100 and 200 EMAs in the 4 hours chart. The price dropped away from the moving averages which are trending downwards now.

Trading recommendations

We are looking for 1.3100 break and then continuation of a fall with a further target at 1.2900.