Paying attention to the 4-hour chart, you will notice that:
- at trading on Monday, the breakdown of the support level 1.37495 led to a significant increase in bearish sentiment, and the development of our targets (1.36895 and 1.36695) ended at the beginning of the American session,
- at the level of 1.3668, a strong support was formed for the British pound (GBP), after which the consolidation began.
Now let’s look at the indicators:
- The currency rate has significantly moved away from the moving averages with periods of 34, 55, 89 and 144, which are directed downward and indicate continued bearish sentiment (in the medium term), as well as a series of resistance levels 1.3800, 1.3807, 1.3811 and 1.3851.
- The MACD histogram is still in the negative zone and below its signal line, continues to decline intensively and thus gives a signal to sell the British pound (GBP).
- The Stochastic Oscillator is in the oversold area and at the moment does not form clear signals, since the% K line moves parallel to the time axis, and has also practically merged with the% D line.
Since it is extremely risky to trust only one clear signal, and also due to the fact that the decline in quotations has slowed down, as confirmation that bearish sentiments may again increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the strong support level of 1.3668. which can open the way to the levels 1.3630, 1.3609 and 1.3550.
Otherwise, the bulls may seize the initiative, and their targets will be the levels 1.3711 and 1.37495.
Resistance levels: 1.3674, 1.3689, 1.37025, 1.3711, 1.37245, 1.37495
Current price: 1.3669
Support levels: 1.3668, 1.3654, 1.3630, 1.3609, 1.3580, 1.3550, 1.3510 / 00
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