Paying attention to the 4-hour chart, you will notice that:
- Since about the middle of the American session of last Friday, bullish sentiment has been dominating in the GBPUSD currency pair,
- at the same time, the growth of quotations slowed down near the level of 1.3907.
Now let’s look at the indicators:
- The currency rate is sandwiched between a moving average with a period of 34 (resistance level 1.39075) on the one hand and averages with periods of 55, 89 and 144 (a range of support levels 1.38555, 1.38245 and 1.38045) on the other.
- The MACD histogram is located slightly above its signal line, but has practically merged with the zero line and is not giving clear signals at the moment.
- Stochastic Oscillator is in the neutral zone and is giving a buy signal for the British pound (GBP), as the% K line rises above the% D line.
Since it is extremely risky to trust only one clear signal, and also due to the fact that the growth of quotations began to slow down, then as confirmation that bullish sentiments may increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the resistance level 1.3907, which may open the way to levels 1.3949, 1.3981 and 1.40085.
Otherwise, the bears may intercept the initiative, and their targets will be the levels 1.3837, 1.38025 and 1.3755.
Resistance levels: 1.3907 / 075, 1.39365, 1.3949, 1.3957, 1.3981, 1.40025, 1.40085
Current price: 1.3900
Support levels: 1.38865, 1.3855, 1.3837, 1.38245 / 225, 1.3815, 1.38045 / 025, 1.3786, 1.3755
Market forecasts, analytics and stock news