19, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound grew to the session high after Martin Weale’s speech (BoE representative). According to him, there is no rush to cut the interest rate in August.

Current situation

In general, we do not see any change in GBP/USD's outlook, its downtrend is still in progress. The pair attempted to recover some of its previous week losses. However, the growing impulse faded at around 1.3300. The current resistance is seen at 1.3300, the support exists at 1.3100.

MACD remained neutral yesterday. If the histogram enters the negative territory, that will indicate sellers’ growing strength. Indicator RSI is in the neutral territory.

The instrument is sandwiched between the 100 and the 50 EMAs. The 200-EMA direction is downwards, the 50-EMA and the 100-EMA are horizontal.

Trading recommendations

We still remain bearish on the outlook for the currency. If price makes another attempt to break the level 1.3100 the pound may fall to 1.2700.