26, September 2016

GBP/USD (a 4-hour chart)

General overview

 The dollar strengthened against the pound on Friday. However, its growth is limited as the Fed’s decision to leave rates unchanged keeps weighing on the dollar.

Current situation

 Cable remained under pressure on Friday. Its attempt to recover met a bearish resistance at 1.3100 where the price reversed and moved south. The price broke the level 1.3000 on its way downwards. The 50, 100 and 200 EMAs accelerated their declines. All moving averages kept heading lower. The current resistance is seen at 1.3000, the support exists at 1.2900. 

MACD is in the negative territory. RSI approached the oversold area.

Trading recommendations     

All eyes are right now at the mark 1.2950. A cut through here will turn attention to the 1.2900 level. On the other side, buyers will try to break the mark 1.3050. If they succeed the price will trend towards 1.3100.