26, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The USA dollar remained unchanged due to the moderate risk appetite. The optimistic USA statistics together with weakness of the pound supported the dollar.

Current situation

The GBP remained unchanged at the start of the new week. The pound is still under pressure. The currency tested the lower bound of its descending channel yesterday. The current resistance is seen at 1.3300, the support exists at 1.3100.

MACD is in the negative territory, the indicator is close to the centerline. If the histogram remains in 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 remained below the 50-EMA in the 4 hours chart. The 100 and 200 EMAs direction is downwards, the 50-EMA is horizontal.

Trading recommendations

In the potential scenario, the next stop for the GBP/USD could well be around 1.2900. If the price fixates above the resistance 1.3300, it may show a short term upward movement to 1.3500.