20, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound partly recovered amid a weak dollar. The risk appetite grew on the back of strong oil.

Current situation

The pound remains in red figures. The current recovery could be attributed to some profit taking from sellers following last week sharp decrease. The GBP/USD slightly grew above 1.3000 in the Asian session and erased some of its gains during the European hours. The session high was marked at 1.3075. The 50-EMA is crossing the 100 and 200 EMAs downwards. The moving averages are trending lower. The current resistance is seen at 1.3100, the support exists at 1.3000.

MACD is in the negative territory. MACD decreased which confirms the strength of sellers.

RSI remains oversold.

Trading recommendations

The GBP/USD is trading around 1.3000. A break below will allow a test of the mark 1.2960. We do not exclude a larger recovery towards 1.3100.