GBP/USD (a 4-hour chart)
The pound was unmoved on the back of the empty calendar on Monday. In the light of this the dollar dynamics will remain the key driver for the GBP/USD pair in the short-term. Meanwhile, the dollar became more optimistic after Donald Trumps’ elections victory hoping that his fiscal policy will support economy growth expectations.
The pound remained inactive trading in a tight range 1.2320 – 1.2370 during the Asian session on Monday. The sellers found a temporally support at 1.2300 and took a breath consolidating their gains. The sterling spiked upwards in the mid-Europe and tested 1.2400 ahead of the NY opening. The price tested the 50 and 100 EMAs in the 4 hours chart. The 50, 100 and 200 EMAs presented a moderate bearish slope. The current resistance is seen at 1.2500, the support is at 1.2400.
The indicators remained within negative territory and slightly changed from previous week readings. MACD remained at the same level which confirms the strength of sellers. The RSI indicator remained within oversold readings.
A clear strength above the immediate resistance may pave way for continuation of the pair's upward trajectory towards 1.2450 where the 200-EMA stands and may limit its upside tone. If a gloomy trend remains intact sellers will push the pair further and may refresh lows at 1.2200.