29, July 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The dollar is under pressure after the weak Initial Jobless Claims report and the Fed decision to keep the rate unchanged.

Current situation

The growth was stopped at the mark 1.3247 where the pair reversed downwards and showed a negative dynamics. The instrument closed the day in the red zone. The current resistance is seen at 1.3300, the support exists at 1.3100.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is still neutral.

The price showed a short-lived growth above the 50 and 100 EMAs. After reaching the mark 1.3242 the pair fall and returned between the 50 and 100 Day EMAs.

Trading recommendations

The trend is still bearish. The GBP/USD next stop could well be at the 1.2900 region.