24, November 2016

GBP/USD (a 4-hour chart)

General overview

A stronger dollar weighed on the pound which is still weak amid the Brexit concerns.

Current situation

Sellers continued to dominate on Wednesday. Traders approached the support 1.2400 overnight and broke below it with Europe opening. After breaking the level sellers drove the price lower towards its immediate support at 1.2300. According to the 4 hours chart the price bounced off the 100-EMA and move towards the 200-EMA. The 50 and 100 EMAs are turning downwards while the 200-EMA is neutral in the 4 hours chart. The resistance lies at 1.2400, the support comes in at 1.2300.

The MACD histogram decreased which indicates the sellers’ strength. The RSI oscillator moved downwards.

Trading recommendations

If the GBP/USD pair consolidates below 1.2400 we expect its further extension towards 1.2300.