22, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound weakened against the dollar despite the positive UK statistics on Wednesday. Traders waited for the Fed decision regarding the rates later the day.

Current situation

The pair seems to continue with the recovery in the European session on Wednesday. The price bounced off the boarder of the oversold zone. The sterling was able to erase some loses turning higher. The GBP/USD traded near 1.3000 in the middle of the European trade on Wednesday. The 50, 100 and 200 Day EMAs maintained their bearish slope. All moving averages keep heading lower. The current resistance is seen at 1.3000, the support exists at 1.2870. 

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

Trading recommendations

 On the whole, the GBP/USD pair threatens further downside pressure. The pound may weaken on the back of the Fed decision regarding the rates. In this potential scenario, the price will fall towards 1.2870. Conversely, the quotes will continue with the recovery towards 1.3100.