GBP/USD (a 4-hour chart)
The unexpectedly strong employment report strengthened the US dollar against its major counterparts. The growth of the dollar pressured the British pound. The Bank of England will meet this week and the regulator may lower the rate from 0.50% to 0.25%. This news will have a strong impact on the pound in the coming days.
The pair pond/dollar remained under pressure. There is a downward trend on the daily chart. The pair is in a descending channel in the 4 hours chart. Yesterday the pair tested the mark of 1.2840 but failed to fixate at it and returned above the level of 1.2900. The indicators recommend short positions. The resistance is at 1.3100, the support comes in at 1.2900.
MACD is in the negative area. The indicator may cross the centerline upwards. If the indicator gets into the positive area it will give us a buy signal. RSI is growing which is a buy signal.
The moving averages (50, 100 and 200) direction is downwards in the 4 hours chart which is a sell signal. The price broke the 50 and 100 EMAs in the 1 hours chart. The 100-EMA acts as a resistance and does not let the pound to grow.
The current rebound above 1.2900 should be considered corrective. The pair traded sideways while waiting for the new drivers. If the pair manages to make a breakout of 1.3100 it may grow towards 1.3300. Once we break below the 1.2900 level, we think that the 1.2700 level will be next.