16, August 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound erased its latest gains as the delay with leaving the EU returned uncertainty to the markets.

Current situation

The pound remained under pressure, the sterling continued to approach the 31-yeal low. The instrument suffered a short lived downward movement, traders pushed the price below 1.2900.The current resistance is seen at 1.2900, the support exists at 1.2700.

The indicators (MACD and RSI) remained unchanged, both of them generate a sell signal.

The price headed away from the moving averages (50, 100 and 200) which are pointing lower in the 4 hours chat. The moving averages generate a sell signal.

Trading recommendations

We remain bearish on the pair. Once we break below the 1.2900 level, we think that the 1.2700 level will be next.