14, October 2016

GBP/USD (a 4-hour chart)

General overview

 The dollar strengthened after the Fed’s minutes publication. The pound kept losses due to weaker Europeans stocks and oil prices.

Current situation

Sellers continued to dominate. The cable remained under selling pressure on Thursday. The GBP/USD pair spent the day around the recent low – 1.2100. The price is developing below the 50, 100 and 200 EMAs which extended their decline. The current resistance is seen at 1.2200, the support lies at 1.2100. 

MACD is in the negative area. MACD grew which indicates the sellers’ positions weakening. RSI indicator is holding near oversold levels.

Trading recommendations

If the selling pressure persists the GBP/USD will remain focused on a potential test of 1.2100. Should this mark be reached successfully, a further extension towards 1.2000 could be observed further.