20, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound decreased on Tuesday despite the positive inflation releases in the country.

Current situation

The pound continued to show weakness on Tuesday. Technically, the pair remained in a neutral bearish tone in the 4 hours chart. The current resistance is seen at 1.3300, the support exists at 1.3100.

MACD is in the negative area. The indictor decreased which indicates sellers’ growing strength.
Indicator RSI approached the oversold territory which is a sell signal.

The price bounced from the 100-EMA, broke the 50-EMA and advanced from it in the 4 hours chart. The 50, 100 and 200 EMAs direction is downwards.

Trading recommendations

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