Paying attention to the 4-hour chart, you will notice that:
- mirrored level 1.4049 now acts as a significant resistance for the British pound (GBP),
- since the beginning of the current day, the bears have been trying to develop an offensive.
Now let’s look at the indicators:
- The currency rate is sandwiched between a moving average with a period of 34 (resistance level 1.4057) on the one hand and averages with periods of 55, 89 and 144 (a series of support levels 1.39935, 1.3956 and 1.3913) on the other.
- The MACD histogram is still in the positive area and below its signal line, continues to decline smoothly and thus gives a signal to sell the British pound (GBP).
- The Stochastic Oscillator is near the oversold zone and is currently not forming clear signals, since the% K line almost crossed with the% D line.
Despite only one clear signal, we expect that the pressure on the British pound (GBP) may increase, and potential bearish targets are located at 1.40025, 1.3953 and 1.3885.
Cancellation of the ‘bearish scenario’ will occur in case of a breakdown of the mirror level 1.4049, which may open the way to levels 1.4112, 1.41405 and 1.4164.
Resistance levels: 1.4049, 1.4057, 1.40655, 1.4079, 1.4112, 1.41405, 1.4164
Current price: 1.4041
Support levels: 1.4029, 1.40025, 1.39935, 1.3981, 1.3956, 1.3953, 1.3924, 1.3913, 1.3885
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