29, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Yesterday the pound rose against the US dollar for the first time after the referendum, as investors’ confidence began growing.

Current situation

The pound tried to recover yesterday. However, its growth was weak and the pair did not succeed much with it. The pound was able to grow to 1.3425. The resistance is at 1.3500, the support comes in at 1.3300.

MACD is in the negative area; its histogram grew that weakened the sell signal. If MACD decreases the pair will move downwards. RSI remained close to the oversold level. The oscillator will show a sell signal until it stays close to the 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

The GBP/USD may still slightly recover. If it grows the pair will aim to close the gap at 1.3700. A downtrend will start as soon as the pair drops below the support level 1.3300, which will be followed by moving down to the support levels 1.3100 and 1.3000.