31, August 2016

GBP/USD (a 4-hour chart)

General overview

Pound weakened on Tuesday following the weak data. At the same time the U.S dollar is strong on the back of the expectations that the Fed will raise the rate this year.

Current situation

The GBP/USD fell back towards its weekly low on the earlier Tuesday's trades; however, the sterling regained some of its losses in the American Session. The current resistance is seen at 1.3200, the support exists at 1.3100.

The indicators (MACD and RSI) are negative. MACD generate a sell signal. The RSI bounced from the oversold area.

The price returned below the 50-EMA in the 4 hours chart. The 50 and 100 EMAs are moving close to each other in the mentioned timeframe. The 200-EMA is hovering above them. All lines are moving downwards and show a sell signal.

Trading recommendations

The indicators recommend short positions. A downtrend will start as soon, as the pair falls below the mark 1.3050.