21, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound decreased and faced a new selling pressure. Buyers failed to hold above 1.3000 on the back of the weak dollar. There was not much to watch on the UK calendar on Tuesday.

 Current situation

After a brief consolidation in the Asian session the price gave up its recent gains. The sterling was not able to sustain its growth and sharply fell below the psychological level 1.3000 during the European hours. Now the price is heading lower towards the next support at 1.2870. The price remained below the main moving averages which are all pointing lower. The current resistance is seen at 1.3000, the support exists at 1.2870. 

MACD decreased which confirms the strength of sellers. RSI is in the oversold area.

Trading recommendations

The pair remains in red figures. The GBP/USD now seems to be heading towards its immediate support near 1.2870.