15, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound grew by 200 points when the BoE decided to keep the rate unchanged. The regulator probably left the door open to launch the stimulus for August.

Current situation

The BoE’s decision triggered a sharp short-term rally that boosted the GBP/USD to a two-week high level. The new daily high is at around 1.3500. The resistance is at 1.3500, the support exists at 1.3300.

MACD is still positive. If MACD remains in the positive territory, buyers’ positions will strengthen. Indicator RSI rebounded from the overbought area that supports sellers.

The instrument remained below the bearish 100-EMA which acts as a resistance in the 4 hours chart. The price rebounded from the 100-EMA and remained close to it.

Trading recommendations

The pair shows a tendency to grow. In this potential scenario, the pair will grow to 1.3700. Alternatively, the price will drop to 1.2900.