10, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound softened to the fresh monthly lows against the dollar following the gloomy Production data in the country. The weak data renewed concerns over the UK economy strength.

Current situation

The tone is still negative in the market. The pound continued moving lower yesterday. The session low was marked at 1.2954. The current resistance is seen at 1.3100, the support exists at 1.2900.

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

The 100-EMA is crossing the 200-EMA in the 1 hour chart which is a sell signal. The price is approaching the 50-EMA which acts as a resistance for the instrument.

Trading recommendations

The price may pull back from the 1.3000 region where the 50-EMA lies. The level 1.2900 is the next sellers’ target.