09, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On Wednesday, manufacturing PMI supported the pound. The index showed the maximum growth in nearly four years (1.6% vs. previous -0.4%). Still the pound is under pressure because of the upcoming referendum.

Current situation

The pair GBP/USD showed volatile trades on Wednesday. The pair could set a new local high at the level of 1.4600 on the European session. However, the pair could not fixate its gains above the level of 1.4560 and returned on it. The resistance lies at 1.4560, the support is at 1.4480.

MACD crossed the zero line upwards. The signal line is in the histogram. MACD decreased. That is a sell signal. RSI approached the overbought level of 70 and bounced off. The Moving Average (200) limits the pound growth on the daily chart.

Trading recommendations

We are still bearish middle term. The break below 1.4480 should send this market looking for the 1.4400 level.