Bears do not have enough strength yet to break the level of 1.3925 in GBPUSD

Paying attention to the 4-hour chart, you will notice that:

  • since the European session on Tuesday, bearish sentiments dominate in the GBPUSD currency pair,
  • at the same time, the bears do not have enough strength to break the level of 1.3925, where ‘fragile’ support for the British pound (GBP) was formed.

Now let’s look at the indicators:

  • The currency rate remains well above the moving averages with periods of 34, 89, 144 and 55, which are a number of support levels 1.3844, 1.3809, 1.3803 and 1.38015.
  • The MACD histogram is still in the positive zone, but already below its signal line, continues to decline smoothly and thus gives a signal to sell the British pound (GBP).
  • Stochastic Oscillator is in the neutral zone and is giving a similar signal, as the% K line falls below the% D line.

Despite two identical and clear signals, 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 support level 1.3925, which can open the way to the levels 1.3876, 1.38505 and 1.3815.

Otherwise, the bulls may seize the initiative, and their targets will be the levels of 1.3981, 1.4006 and 1.4060.

Let us remind Forex traders that today they should pay attention to a number of important events that can have a significant impact on the further course of trading:

  • at 09:00 Moscow time. UK inflation data will be published,
  • at 13:30 Moscow time. Bank of England Governor Andrew Bailey will deliver a talk at the ‘Diversity in Market Research – Launching Our Diversity Meeting’ virtual event hosted by the Bank of England.

Resistance levels: 1.3957, 1.3981, 1.40025, 1.4006, 1.4060, 1.4111, 1.4137

Current price: 1.3927

Support levels: 1.3925, 1.3902, 1.3876, 1.38505, 1.3844, 1.3815, 1.3809

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