10, November 2016

GBP/USD (a 4-hour chart)

General overview

The Donald Trump's victory knocked down the US dollar, sending it to the monthly lows.

Current situation

The pound traded mixed on Wednesday. Prices rallied in the Asian session, reaching the monthly highs at 1.2550. However, after snapping the level the pair reversed and sharply fell to opening prices where it stayed awaiting for fresh drivers. The 200-EMA limited the pound strengthening so far. The GBP/USD just tested the moving which rejected it downwards. Prices returned below the 200-EMA and stayed between the mentioned moving and neutral 50 and 100 EMAs in the 4 hours chart. The current resistance is seen at 1.2500, the support is at 1.2400.

MACD decreased which indicates the buyers’ positions weakening. RSI remained within neutral territory.

Trading recommendations

We believe that the US dollar will remain under pressure on the back of a Trump victory. Buyers may try to recover their positions, climbing to the 1.2500 level first.