Paying attention to the 4-hour chart, you will notice that:
- strong support for the British pound (GBP) remains at 1.3318,
- since the beginning of the current day, the strengths of bulls and bears are approximately equal.
Now let’s look at the indicators:
- The currency rate is sandwiched between the moving averages with periods of 34, 89 and 55 (a series of resistance levels 1.3337, 1.33605 and 1.33635) on the one hand and an average with a period of 144 (support level 1.33145) on the other.
- 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 neutral zone and is giving an opposite signal, as the% K line falls below the% D line.
Due to the contradiction in the signals provided by the indicators, as well as the absence of a pronounced trend, the most correct decision now is to focus on the strong support level of 1.3318; if the bears have enough strength to break it, then their further targets may be levels 1.3266, 1.32185 and 1.3180.
Otherwise, the bulls may seize the initiative, and their potential targets will be the levels 1.34085, 1.34455 and 1.3477.
Let us 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: 1.3337, 1.33605 / 625/635, 1.34085, 1.34455, 1.3459, 1.3477, 1.35025
Current price: 1.3329
Support levels: 1.3318, 1.33145, 1.3409, 1.3283, 1.3266, 1.3255, 1.3235, 1.32185, 1.3180, 1.3134
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