Paying attention to the 4-hour chart, you can see that a short-term ‘equilibrium’ has been found in the forex market in this currency pair:
- on the one hand, in the area of 1.3689 – 1.3703 there is a strong resistance for the British pound (GBP),
- on the other hand, noticeable support has formed in the area 1.36185 – 1.3634.
Now let’s look at the indicators:
- The currency rate remains markedly above the moving averages with periods of 55, 34, 89 and 144, which are a number of support levels 1.36005, 1.3589, 1.3567 and 1.35045.
- The MACD histogram is still in the positive zone, but crossed with its signal line and is not giving clear signals at the moment.
- Stochastic Oscillator is in the neutral zone and is giving a signal to sell the British Pound (GBP), as the% K line falls below the% D line.
Since it is extremely risky to trust only one clear signal, then as confirmation that bearish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the mirror level 1.36185, which can open the way to the levels 1.3586, 1.3543 and 1.35095.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.3689, 1.3725 and 1.37615.
We remind forex traders that today at 20:30 Moscow time. Fed Chairman Jerome Powell will participate in the panel discussion live at an event hosted by Markus Brunnermeier (Director of the Bendheim Center for Finance at Princeton University). Unexpected statements can have a significant impact on the further course of trading.
Resistance levels: 1.36495, 1.36765, 1.3689, 1.3703, 1.3725, 1.37615, 1.3800 / 10
Current price: 1.3640
Support levels: 1.3634, 1.36185, 1.3602 / 005, 1.3589 / 86, 1.3567 / 625, 1.3543, 1.35245
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