28, November 2016

GBP/USD (a 4-hour chart)

General overview

Pound was little changed on Friday despite positive UK GDP data release.

Current situation

The GBP/USD remained confined within a trading range between 1.2400 and 1.2500 on Friday. Nevertheless the pressure persisted and the price stayed at the lower limit of the band on Friday. The price stayed around the 50 and 100 EMAs in the 4 hours chart. The 100 and 200 EMAs were neutral while the 50-EMA went upwards. The resistance lies at 1.2500, the support comes in at 1.2400.

The indicators MACD and RSI slightly changed from Friday and remained neutral.

Trading recommendations

The overall picture is bearish. We expect from price a move lower. Sellers’ first target is the level 1.2400. After breaking the level sellers may lead the pair to 1.2300.