Paying attention to the 4-hour chart, you will notice that:
- the breakdown of the strong resistance level 1.41985 led to a noticeable increase in bullish sentiment, and our first target (1.4241) was reached early this morning,
- at the level of 1.4233 there was a noticeable resistance for the British pound (GBP), after which the consolidation began.
Now let’s look at the indicators:
- The currency rate has noticeably moved away from the moving averages with periods of 34, 55, 89 and 144, which are directed upward and indicate continued bullish sentiment, as well as a number of support levels 1.4170, 1.4164, 1.41435 and 1.4066.
- The MACD histogram is still in the positive area and above its signal line, continues to rise smoothly and thus gives a signal to buy the British pound (GBP).
- The Stochastic Oscillator is in the overbought area and at the moment is not forming clear signals, since the% K line moves almost parallel to the time axis, and also almost crossed the% D line.
Since trusting only one clear signal is extremely risky, and also due to a slowdown in the growth of quotations, as a confirmation that bullish sentiments may again increase in the forex market in this currency pair, it is necessary to wait for the breakdown of the resistance level of 1.4233, which can open the way to levels 1.42775, 1.43445 and 1.4376.
Otherwise, the bears may seize the initiative, and their targets will be the levels 1.41985, 1.4163 and 1.41375.
We remind forex traders that today at 18:00 Moscow time. Bank of England Governor Andrew Bailey will deliver a speech ‘Building a Financial System Fit for a Clean, Sustainable and Equitable Future’ at the Global Responsible Business 2021 event hosted by Reuters Events. Unexpected statements can have a significant impact on the further course of trading.
Resistance levels: 1.4233, 1.4241, 1.42485, 1.42775, 1.43445, 1.4376
Current price: 1.4232
Support levels: 1.41985, 1.41805, 1.4170, 1.4164 / 63, 1.41435, 1.41375, 1.41185, 1.4105
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