Paying attention to the 4-hour chart, you will notice that:
- since the American session on Tuesday, bullish sentiments dominate in the GBPUSD currency pair,
- the upside potential of the British pound (GBP) is significant.
Now let’s look at the indicators:
- The currency rate is sandwiched between the moving averages with periods of 55 and 144 (resistance levels 1.3785 and 1.3814) on the one hand and the average with a period of 34 (support level 1.37485) on the other, and at the moment it has practically merged with the average with a period of 89.
- The MACD histogram is still in the negative zone and above its signal line, continues to rise smoothly and thus gives a signal to buy the British pound (GBP).
- Stochastic Oscillator is in the overbought zone and is giving a similar signal, as the% K line rises above the% D line.
Therefore, we expect that the growth of quotations may continue, and potential targets of the bulls are located at 1.3833 and 1.3902.
Cancellation of the ‘bullish scenario’ will occur in case of a breakdown of the mirror level 1.3769, which may open the way to levels 1.3729 and 1.36695.
We remind forex traders that today at 19:00 Moscow time. Fed Chairman Jerome Powell will be interviewed by David Rubenstein of the Washington City Economic Club. Unexpected statements can have a significant impact on the further course of trading.
Resistance levels: 1.3785, 1.37935, 1.3814, 1.3819, 1.3833, 1.38535, 1.3902
Current price: 1.3775
Support levels: 1.3769, 1.37485, 1.3729, 1.36935, 1.3681, 1.36695
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