13, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound fell against the dollar due to concerns regarding the upcoming referendum on 23rd of June. According to YouGov 43% of Britons would vote to stay in the union and 42% would leave it.

Current situation

The sellers were able to drive the pair lower. The quotes decreased and broke the levels 1.4400, 1.4320 and 1.4240. After breaking the mark 1.4240 the pound reversed some of its losses and ended the trading week at 1.4253. The resistance is at 1.4320, the support come in at 1.4240.

MACD is in the negative area. The signal line is in the histogram. MACD decreased, that is a sell signal. RSI is in the oversold zone. The price broke Moving Averages (50, 100 and 200) on the 4 hour chart. That is a sell signal. The price is close to the strong support at 1.4150 on the daily chart.

Trading recommendations

The price is oversold and it may bounce upwards to the strong level 1.4400. If we see the price below the support 1.4320 we would sell to 1.4150.