08, November 2016

GBP/USD (a 4-hour chart)

General overview

Positive House Prices index supported the pound and slowed down its decline on Monday.

Current situation

The pound gave up its recent highs and moved lower on Monday. The price gapped lower in the Asian session and extended its losses during the European hours. The price pierced the 1.2400 level, but failed to regain it. After testing 1.2400 the price slightly rolled back. The GBP/USD broke the 50-EMA and stopped its decline at 100-EMA in the 1 hour chart. The 50-EMA is turning downwards while the 100 and 200 EMAs keep moving north in the same chart. The current resistance is seen at 1.2500, the support is at 1.2400.

MACD decreased which indicates the buyers’ positions weakening. RSI moved downwards.

Trading recommendations

The loss of the 1.2400 level may point to a further period of downside to come. In this case bears may drag the price lower towards 1.2300.