19, October 2016

GBP/USD (a 4-hour chart)

General overview

The pound strengthened on the back of the positive Consumer Price index in the UK.

Current situation

The sterling remained in a range during the Tuesday’s trades. The price moved from its lower limit at 1.2130 and was able to escalate up to 1.2288 where the upward momentum faded. An attempt to recover was limited by the 50-EMA in the 4 hours chart. All moving averages keep heading south in the mentioned timeframe. The current resistance is seen at 1.2300, the support lies at 1.2200. 

MACD grew which indicates the sellers’ positions weakening. The RSI oscillator moved upwards.

Trading recommendations

A break above the upper limit of the range will allow recovering towards 1.2400. A break below 1.2100 will suggest further weakness.