24, October 2016

GBP/USD (a 4-hour chart)

General overview

The pound remained under pressure amid the return of the hard Brexit concerns. According to the U.K. Office for National Statistics Public Sector Net Borrowing grew in September.

Current situation

The pound remained vulnerable on Friday. Sellers continued to dominate and were able to push the price lower. The pair moved below 1.2300 and approached the level 1.2200 in the European session on Friday. The GBP/USD pair broke the level before the NY opening. The 50-EMA acts as a resistance and does not let the price to grow in the 4 hours chart. The pound bounced off the level and trended downwards from it. The 50, 100 and 200 EMAs continued moving lower. The current resistance is seen at 1.2300, the support lies at 1.2200. 

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 heading south.

Trading recommendations

A move below the 1.2200 support would suggest a resumption of the bearish trend. The prices may move lower towards 1.2100.