Paying attention to the 4-hour chart, you will notice that:
- on Wednesday trading, the breakdown of the resistance level 1.36335 led to a significant increase in bullish sentiment, and the development of our first two alternative targets (1.3668 and 1.3711) was completed during the American session,
- after a short consolidation, the growth of the GBPUSD quotes resumed.
Now let’s look at the indicators:
- The currency rate remains below the moving averages with periods of 34, 55, 89 and 144, which are a series of resistance levels 1.37325, 1.3779, 1.3788 and 1.3825.
- The MACD histogram is still in the negative zone, but already above its signal line, continues to grow rapidly and thus gives a signal to buy the British pound (GBP).
- Stochastic Oscillator is in the overbought zone and is giving a similar signal, 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 1.37495 and 1.3808.
The bullish scenario will be canceled if the mirror level 1.3698 is broken, which may open the way to the levels 1.3668 and 1.36335.
Resistance levels: 1.37245, 1.37325, 1.37495, 1.37775 / 79, 1.3788, 1.3808, 1.3821 / 25
Current price: 1.3716
Support levels: 1.3698, 1.3689, 1.3668, 1.36335, 1.36135, 1.35925, 1.3571
Market forecasts, analytics and stock news