22, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The recent rally in the pair GBP/USD was supported by the positive unemployment data. However, yesterday’s retail sales report undermined the overall positive outlook. Today we expect a number of PMI releases.

Current situation

The disappointing UK retail sales data weighed the pound which fell from the local highs. The pair settled above the 1.3100 level by the end of the trades. The current resistance is seen at 1.3300, the support exists at 1.3100.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is in the neutral territory.

The instrument remains in-between the 50-EMA and the 100-EMA in the 4 hours chart. The moving averages (50, 100 and 200) direction is downwards.

Trading recommendations

The pair may resume its downtrend if it breaks the mark 1.3100. Alternatively, the pair GBP/USD will rally towards 1.3350.