14, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The news that Cameron officially resigned as the UK Prime Minister and Theresa May took over supported the pound. That news decreased the political uncertainty which followed the Brexit referendum. The pound is under pressure, the pair is waiting for the BoE decision regarding the rate.

Current situation

The GBP/USD decreased after a short-lived consolidation during the Asian session on Wednesday. The pair lost about 0.65% yesterday. The instrument remained in a descending channel, its upper limit is at the mark 1.33, its lower limit is at 1.2830. The resistance is at 1.3300, the support comes in at 1.3100.

MACD is in the positive area. The histogram fell which indicates the buyers’ weakness. Indicator RSI rebounded from the overbought area that also supports sellers.

The 100-EMA is a resistance in the 4 hours chart. The price rebounded from the 100-EMA and returned to the 50-EMA which acts as a support.

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.3300, the next one is 1.3500.