09, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound softened on the back of the weaker Manufacturing Production report and Governor Carney's dovish comments.

Current situation

The bullish tone that started mid August remains firm in place. The GBP/USD is in an ascending channel, close to its lower limit. The pair got under the selling pressure and is falling towards 1.3200 now. The 50-EMA is crossing the 200 and 100 EMAs upwards. All moving averages keep heading higher. The current resistance is seen at 1.3360, the support exists at 1.3200.

MACD remained in the positive area. MACD decreased which indicates the buyers’ positions weakening. RSI is heading south.

Trading recommendations

If the GBP/USD regains the level 1.3360 the price will grow towards the round level – 1.3400. The mark 1.3440 is the next buyers’ target. In case of the selling scenario sellers will drag the price towards the 1.3200 area.