GBP/USD (a 4-hour chart)
The pound remained under pressure due to a lack of market movers and a stronger dollar.
The neutral phase that started a week ago is still intact. The GBP/USD pair traded in the middle of the tight range between 1.2300 - 1.2200. The price recovered to 1.2250 in the European session where the upward spike faded as the pair encountered bears' resistance. The 1 hour chart shows that the pound broke the 50-EMA and pierced 100 EMAs. The price struggled with a bearish 100-EMA during the day. The 50, 100 and 200 EMAs are heading lower in the same chart. 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 positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI is neutral.
If the GBP/USD continues its recovery we can see it advancing towards 1.2300/30 region. A move below 1.2200 will aim the pair at 1.2100.