27, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound got under pressure due to the revived expectations that the BoE would lower the rate in August.

Current situation

The pound was neutral yesterday. The trading instrument remained at the support 1.3100, going back and forth during the course of the day. 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’ strength. If MACD returns into the positive area the buyers will have the ball. RSI is neutral.

The 50, 100 and 200 Day EMAs are trending downwards, forming a bearish cross over in the 1 hour chart. 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 event that sellers manage to force the pair below 1.3100 the GBP/USD will decrease towards 1.2900. Alternatively, the Sterling will grow to 1.3300.