28, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound got under pressure again when George Osborne (the Finance Minister) said that the results of the referendum will prolong the further volatility in the financial markets. According to George Osborne the economy of the country is ready to leave the EU and it will successfully cope with its consequences.

Current situation

The pair decreased and was able to set new historical low at 1.3118. The resistance is at 1.3300, the support comes in at 1.3100.

MACD is in the negative area and its histogram decreased that is a sell signal. If MACD remains at the same levels the pair will move downwards. RSI fell to the oversold level of 30. The oscillator will show a sell signal until it stays close to the undervalued area. The price is below the Moving Averages (50, 100 and 200) on the 4 hour chart. The Moving Averages are moving downwards, that is a sell signal.

Trading recommendations

We presume that the pair has no chances to recover soon. The Brexit will pressure the pair further. We do not exclude some pull backs that we expect to be weak and short-lived. The sellers’ next target is 1.3100 and 1.3000. The GBP/USD may grow towards 1.3700.