19, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound remained under pressure as the BoE left the door open for another rate cut to boost the economy if necessary.

Current situation

The GBP/USD remained in red figures on Friday. Bears maintained control over the market. The price gave up its recent gains, broke the level 1.3200, 1.3100 and touched 1.3000 at close of trade. The GBP/USD is under the 50, 100 and 200 EMAs in the 4 hours chart. The 50-EMA is heading lower, the 100 and 200 EMAs are turning downwards. The current resistance is seen at 1.3100, the support exists at 1.3000.

MACD is in the negative territory. MACD remained at the same level which confirms the strength of sellers. RSI reached the oversold area.

Trading recommendations

If the pair manages to make a breakout of the support 1.3000 the price will continue its downward trajectory. We do not exclude a correction towards 1.3100 – 1.3150 after a rapid decrease.