16, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound got under selling pressure following the BoE’s decision to leave the rates unchanged. The regulator highlighted that he was ready to lower the rates again if the economy does not show any descent progress in the nearest future.

Current situation

The pound got under intense selling pressure when the BoE left unchanged its rates and policy. Sellers have the ball now. They are struggling for a control over the 1.3200 level. The price touched the 50, 100 and 200 EMAs in the 4 hours chart. The 50-EMA is pointing lower, the 100 and 200 Day EMAs are neutral. The current resistance is seen at 1.3360, the support exists at 1.3200.

MACD is negative. MACD decreased which indicates the sellers’ positions strengthening.

RSI is approaching the oversold territory

Trading recommendations

If the pressure persists the downward movement will be continued. In this potential scenario, the pair will break the level 1.3200 and advance towards 1.3100.