18, October 2016

GBP/USD (a 4-hour chart)

General overview

The pound remained under pressure amid growing concerns over the hard Brexit.

Current situation

The neutral phase that started last week is still intact. The cable gapped downwards at the open on Monday. The price jumped downwards from 1.2182 to 1.2153. The pair extended its losses after the gap and stayed in a tight range 1.2140 - 1.2200 during the course of the day. The sterling remained under bearish 50-EMA which limits its growth in the 1 hour chart. The moving averages slowed down with their decline, going downwards in the same chart. The current resistance is seen at 1.2200, the support lies at 1.2100. 

MACD is in the negative area. MACD grew which indicates the sellers’ positions weakening.

RSI indicator is consolidating around the oversold levels.

Trading recommendations

We prefer to stay neutral for now. We expect further sideways trades in the coming sessions.