12, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound is inactive against the dollar after disappointing Trade Balance in the country. The dollar is still weak due to the fading expectations of the Fed rate hike.

Current situation

The tone is still positive in the market. The GBP/USD was almost unchanged on Friday, consolidating in a range 1.3300 – 1.3340. The moving averages are moving upwards. The 50-EMA is crossing the 200-EMA upwards, the 200-EMA is touching the 100-EMA in the 4 hours chart. The current resistance is seen at 1.3360, the support exists at 1.3200.

MACD decreased which indicates the buyers’ positions weakening. RSI is approaching the negative territory.

Trading recommendations

The overall picture remains bullish, however, soft near-term studies maintain risk of stronger correction towards 1.3100.