Paying attention to the 4-hour chart, you will notice that:
- strong support for the British pound (GBP) formed at 1.3760,
- since the beginning of the Asian session, the bulls are trying to develop an offensive.
Now let’s look at the indicators:
- The currency remains well below 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 1.3848, 1.3879, 1.3929 and 1.4015.
- The MACD histogram is still in the negative zone and slightly below its signal line, but it started to rise very smoothly and thus indicates a possible strengthening of bullish sentiment.
- Stochastic Oscillator headed to the exit from the oversold zone and is giving a buy signal for the British Pound (GBP), as the% K line rises above the% D line.
Therefore, we expect that the bulls’ advance may continue, and their potential targets are located at 1.3810, 1.38525 and 1.39245.
Cancellation of the bullish scenario will occur in case of a breakdown of the strong support level 1.3760, which may open the way to the levels 1.3730, 1.36895 and 1.36695.
Let us remind Forex traders that today at 15:30 Moscow time. important data on the US labor market will be published, which may have a significant impact on the further course of trading.
Resistance levels: 1.3810, 1.3827, 1.3842 / 48, 1.38525, 1.3879
Current price: 1.3772
Support levels: 1.3760, 1.3751, 1.3730, 1.36895, 1.36695
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