28, September 2016

GBP/USD (a 4-hour chart)

General overview

The pound is under pressure due to oil prices decrease.

Current situation

The buying interest was short-lived and faded a few pips above 1.3200. The price sharply fell from the session high, returned below the level and remained flat between 1.3200 and 1.2940 during the day. The GBP/USD pair is well below the moving averages. The 50, 100 and 200 EMAs maintained their decline. The current resistance is seen at 1.3000, the support exists at 1.2900. 

MACD is in the negative territory. MACD remained at the same level which confirms the strength of sellers. RSI is within the neutral territory. The oscillator is heading south.

Trading recommendations

If the GBP/USD pair remains within the negative territory sellers will make another attempt to break below 1.2900. Meanwhile, we prefer to stay neutral for now. We expect further sideways trades in the coming hours.