08, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound softened due to a weak Industrial Production report. The production fell more than expected in July.

Current situation

The pound experienced a strong rally against the US dollar on Tuesday. Today the sterling came under renewed selling pressure. The GBP/USD pair retreated from the recent highs and is testing the support 1.3360. The 50, 100 and 200 Day EMAs maintain a strong bullish slope. The 50-EMA is crossing the 200-EMA upwards which is a buy signal. The current resistance is seen at 1.3500, the support exists at 1.3360.

MACD shows a divergence in the 1 hour chart. RSI stays within the overbought area.

Trading recommendations

All eyes are right now at the support level 1.3360. Should that level break down and the GBP/USD will return to a decrease. Sellers’ targets are the levels 1.3270 and 1.3200. The pound will continue to advance north if the price breaks the mark 1.3440. The resistance 1.3500 is the next buyers’ target.