25, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell on the back of weak economical releases which added concerns over the British economy outlook after the Brexit.

Current situation

The GBP/USD faced further downside pressure. According to the 4 hours chart the cable traded sideways. The sellers managed to lead the price from 1.3300 to 1.3100. The daily and weekly technical studies remain bearish. The current resistance is seen at 1.3300, the support exists at 1.3100.

MACD indicator decreased. 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 approaching the oversold territory which is a sell signal.

The instrument fell below the 50-EMA in the 4 hours chart. The 100 and 200 EMAs direction is downwards, the 50-EMA is horizontal.

Trading recommendations

If the price fixates below the support 1.3100, it may continue the downward trend in the short term. The potential target is 1.2900.