23, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound is in demand due to the risk appetite growth and amid the dollar weakness across the board.

Current situation

The GBP/USD pair continued with the recovery on Thursday. The price had been growing the second session in a row. Buyers were able to lead the price upwards through 1.3000. The rally faded near the level 1.3100 where the pound had found a solid resistance. The sterling touched the bearish 50-EMA and bounced back. The 50, 100 and 200 EMAs maintained their bearish slope. The current resistance is seen at 1.3100, the support exists at 1.3000. 

MACD is in the negative territory. MACD grew which confirms the sellers’ positions weakening. RSI bounced from the oversold area.

Trading recommendations

An uptrend will start as soon, as the pair rises above the resistance level 1.3100. A move below the 1.3000 support would suggest a resumption of the bearish trend.