Break of strong support level 1.36415 in GBPUSD will give confidence to bears

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

  • since the European session on Monday, the GBPUSD currency pair is dominated by bearish sentiment, as a result of which our first alternative target – 1.3690 was reached; also note that at the moment the quotes were very close to our second alternative target – 1.36415,
  • at the same time, the decline in quotations has already slowed down several times when approaching the strong support level 1.36415.

Now let’s look at the indicators:

  • The currency rate is still above the moving averages with periods of 55, 89 and 144, which are a range of support levels 1.36515, 1.36235 and 1.35835, and is currently trying to consolidate below the average with a period of 34.
  • The MACD histogram is still in the positive zone and below its signal line, continues to decline smoothly and thus gives a signal to sell the British pound (GBP).
  • Stochastic Oscillator headed towards the oversold zone and is giving a similar signal, as the% K line goes down 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 advisable to wait for the breakdown of the strong support level 1.36415, which can open the way to the levels 1.35845, 1.35285 and 1.35095.

Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.3714, 1.3733 and 1.37615.

We remind forex traders that today at 10:00 Moscow time. will be published data on the UK labor market, which may have a noticeable impact on the further course of trading.

Resistance levels: 1.3682, 1.3714, 1.3733, 1.3745, 1.37615

Current price: 1.3657

Support levels: 1.36515, 1.36415, 1.36235, 1.36185, 1.36065, 1.35845 / 835

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