GBPUSD at multi-month highs – is this the limit?

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

  • from the American session on Monday, bullish sentiments dominate in the GBPUSD currency pair,
  • at the moment, the currency rate is in the area of ​​local max, while there are no significant visible resistance levels.

Now let’s look at the indicators:

  • The currency has consolidated significantly above the moving averages with periods of 34, 55, 89 and 144, which are now a range of support levels 1.4100, 1.4040, 1.3985 and 1.3941.
  • The MACD histogram is still in the positive area and above its signal line, continues to grow rapidly and thus gives a signal to buy the British pound (GBP).
  • The Stochastic Oscillator is in the overbought area and is currently not forming clear signals, since the% K line is moving parallel to the time axis.

Despite only one clear signal, we expect that the growth of quotations may continue, and potential targets of the bulls are located at 1.4241 and 1.42775.

Cancellation of the ‘bullish scenario’ will occur in case of breakdown of the mirror level 1.41505, which may open the way to levels 1.4106 and 1.4077.

We remind Forex traders that today they should pay attention to a number of events that can have a noticeable impact on the further course of trading:

  • at 09:00 Moscow time. UK labor market data will be published,
  • at 17:00 Moscow time. Hearings of the House of Lords Economic Affairs Committee on Quantitative Easing (QE) will begin, in which Bank of England Governor Andrew Bailey, Bank of England Deputy Governor for Monetary Policy Ben Broadbent, and Bank of England Deputy Governor for Markets and Banking Sir David Ramsden will participate.

Resistance levels: 1.4177, 1.41875, 1.4241, 1.42775, 1.43445, 1.4376

Current price: 1.4175

Support levels: 1.4164, 1.41505, 1.41295, 1.4106, 1.4100, 1.4089

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