27, September 2016

GBP/USD (a 4-hour chart)

General overview

The dollar remained under pressure against its major rivals as stocks kept digesting the latest Fed’s decision. Moreover, traders were cautious ahead of U.S. Presidential Debates.

Current situation

The downward pressure persisted on Monday. The GBP/USD pair erased all its Friday’s gains and sharply fell from the local high towards the next support at 1.2900. The price stuck in post-Brexit short-term consolidation. The 50, 100 and 200 EMAs maintained its bearish slope and extended their declines in the 4 hours chart. The current resistance is seen at 1.3000, the support exists at 1.2900. 

MACD decreased which confirms the strength of sellers. RSI consolidated within the negative territory.

Trading recommendations     

If the pressure persists the GBP/USD may extend its downward trajectory. The nearest target remains the support level 1.2900, the second target is at 1.2800.