30, August 2016

GBP/USD (a 4-hour chart)

General overview

The GBP/USD was under pressure on Monday. The market was closed due to the Banking holiday and sterling traded under influence of external factors. 

Current situation

The pound extended its decline against the U.S dollar on Monday. The pair broke the 1.3100 level and consolidated below it. The current resistance is seen at 1.3100, the support exists at 1.3000.

The indicators (MACD and RSI) are negative. MACD generate a sell signal. The RSI is oversold which signals about a possible correction.

The price broke the 50 and 100 EMAs in the 4 hours chart, however, the pound did not move far from the lines and stayed below them. The moving averages are turning downwards and generate a sell signal.

Trading recommendations

We remain bearish on the pair. Once we consolidate below the 1.3100 mark, we think that the 1.3000 level will be next.