09, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound stayed at the Friday’s close. The Sterling has been under pressure since the BoE cut the rate to cushion the Brexit negative impact.

Current situation

We preserve a short-term bearish outlook for the pair. The GBP/USD remained close to the fresh lows. The price is locked between levels 1.3000 and 1.3100. The current resistance is seen at 1.3100, the support exists at 1.2900.

The indicators slightly changed from Friday. MACD and RSI generate a sell signal.

The trading instrument remained below the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages remained at the same place.

Trading recommendations

We expect a short-term growth towards 1.3175 where the 50 and 100 Day EMAs lie. In this potential scenario the GBP/USD shall bounce from the mentioned mark downwards towards 1.2900.