Sasha Singh
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GBPUSD : What Moving Average are Signaling?

GBPUSD : 4 Hour Chart

GBPUSD seems like trading within a falling channel trend on the 4 hour chart. Also there is a key support at 1.6959 declining below which the pair might give some bearish signal. The pair extended losses after the series of strong US data again rebuild the expectations among investors that Fed might increase the interest rates sooner than earlier scheduled if the US economy continues to post the positive data.

The simple moving averages on the chart are signaling that the pair might continue to decline. The 50 day SMA is contracting towards the 200 day SMA and might cross below it. If it does so, the pair will continue to decline within the falling channel and might again test the support at 1.6959.

GBPUSD : Daily Chart

If looking at the daily chart, the pair still seems supported and i don't see any bearish confirmation until the pair declines below the rising support trend line. Also the moving averages are aligned in the same upward direction signaling an uptrend continuation.