28, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound decreased on Wednesday in spite of positive GDP for the 2nd quarter. However, the British currency got a moderate support at the American session on the back of the news from the USA.

Current situation

The pound was neutral most of Wednesday. The trading instrument remained at the support 1.3100, going back and forth during the course of the day. The pound got a moderate support after the Fed decision to leave the rates unchanged. 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 broke the 50, 100 and 200 Day EMAs and advanced north in the 1 hour chart.

Trading recommendations

The trend is objectively bearish. The pair is under the risk of falling under the level of 1.3100. Alternatively, the GBP/USD will grow to 1.3300.