16, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound remained under pressure. Nevertheless the concerns that the UK can leave the EU weakened when the fresh UK statistics was published. In economic news: Unemployment Rate decreased and average earnings grew.

Current situation

Technically, the main trend is down on the daily chart. The pair recovered yesterday and could grow to the mark 1.4213. Buyers were not able to take the price higher and it decreased to the level 1.4150. The pair is at the year lows. The resistance is at 1.4240, the support come in at 1.4150.

MACD is in the negative area. The indicator grew, that is a buy signal. RSI grew from the oversold zone. That is also a buy signal. The pair is below Moving Averages (50, 100 and 200) on the 4 hour chart. The Moving Averages are directed downwards. That is a sell signal.

Trading recommendations

Once the pair breaks above the 1.4240 level we will see it growing to 1.4400. Alternatively, we expect a decrease to 1.4060.