Paying attention to the 4-hour chart, you will notice that:
- strong support for the British pound (GBP) remains at 1.41375,
- from early morning, bullish sentiments dominate in the GBPUSD currency pair,
- at the same time, the growth of quotations began to slow down when approaching the resistance level of 1.4185.
Now let’s look at the indicators:
- The currency rate is again above the moving averages with periods of 34, 55, 89 and 144, which are a number of support levels 1.4159, 1.4137, 1.4095 and 1.40165.
- The MACD histogram is in the positive area and slightly below its signal line, started to rise smoothly and thus indicates a possible strengthening of bullish sentiments.
- 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 trusting only one clear signal is extremely risky, and also due to the fact that the growth of quotations began to slow down, as a 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 1.4185, which could open the way to levels 1.4210 and 1.4241.
Otherwise, the rate of the GBP / USD currency pair will move within the 1.41375 – 1.4185 price range.
An alternative (‘bearish’) scenario will be ‘activated’ in the event of a breakdown of the strong support level 1.41375, after which the quotes may decline to levels 1.41105 and 1.40655.
Resistance levels: 1.4185, 1.4210, 1.4233, 1.4241, 1.42775
Current price: 1.4168
Support levels: 1.4159, 1.4149, 1.41375, 1.41105, 1.4100
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