18, November 2016

GBP/USD (a 4-hour chart)

General overview

The pound strengthened on the back of better-than-expected Retail Sales.

Current situation

The British currency was range-bound-to lower during the Asian hours on Thursday. The GBP/USD strengthened ahead of the Europe opening. The price spiked and tested the upper limit of the range. However the pair rolled back when the advance lost upward momentum. Prices bounced upwards from the 50-EMA in the 4 hours chart. The upward trajectory was stopped by the 200-EMA. The moving averages are still neutral. The current resistance is seen at 1.2500, the support is at 1.2400.

The MACD histogram decreased which indicates the sellers’ strength. The RSI oscillator consolidated within negative area.

Trading recommendations

The pound needs fresh drivers to leave the current range. A break above 1.2500 will open the way towards 1.2550. A daily close below 1.2400 would risk 1.2350.