12, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The GBP/USD ignored the U.S labour market data and oil prices growth. Investors’ attention now turns to the retail sales and consumer sentiment releases which may determine its further movement.

Current situation

The pair remained in red figures. Traders pushed the price lower on Thursday. The pound is now decisively trading above the 1.2900 mark. The current resistance is seen at 1.3100, the support exists at 1.2900.

MACD remained in the negative area. MACD decreased which indicates the sellers’ positions strength.
RSI approached the oversold area.

The 4 hours chart shows that the instrument remained below the bearish 50-EMA which extended its decline. The 50, 100 and 200 Day EMAs are heading lower.

Trading recommendations

The GBP/USD remained under pressure. We are looking for the current support break and then continuation of a fall with a further target at 1.2900 and further out 1.2700.