17, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The retail sales grew in the UK in May. The UK economy still has strength despite the uncertainty about the outcome of the referendum. The UK Central Bank left its monetary policy unchanged.

Current situation

The pair was decreasing yesterday during the European session. The pair fell from 1.4215 and reached the mark of 1.4011. The pair GBP/USD turned upwards on the American session and reversed some of its losses. The pair recovered from 1.4000 and reached the opening price level. The resistance is at 1.4240, the support come in at 1.4150.

The technical indicators lost their bearish impulse, but remained in the red zone. The MACD recovered, its sell signal faded. RSI bounced from the oversold area. If the oscillator remains above the oversold area we will get a buy signal. The Moving Averages are moving downwards which 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.