30, June 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On Wednesday, the pound recovered as the market sentiment continued to stabilize after a shocking decision of London to leave the European Union. Meanwhile, Stephen Crabb (the leader of the Conservative Party and a candidate for Prime Minister) excluded the possibility of another referendum regarding the Brexit.

Current situation

The pound actively recovered yesterday and was able to gain about 1.12% during the day. The pair is trying to close the gap it opened this week with. The resistance is at 1.3500, the support comes in at 1.3300.

MACD remained in the negative area, its histogram grew. The indicator will give buy signals while its histogram grows. RSI is in the neutral area; its growth from the oversold area is a buy signal. 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

If the pound grows it will advance to 1.3700 to close the gap. Only a move below the strong support at 1.3300 can strengthen sellers’ positions.